A famous economic expert D. Thuwaini is working on the legislative and institutional framework which is identified by the Iraqi Central Bank’s law 56 in the year 2004. The major goal by this law was to maintain the stability in the price and to the financial system. The other targets involved in this scenario present the maintainable development which will provide more job opportunities. The content of the law allowed freedom to the Iraqi Central Bank to implement its monetary policy in the country using three elements. Two of them are directly under the control of the Iraqi Central Bank and the interest rates of the Iraqi dinar, which generated by the Banking operations and it would be used as a reference of Bank’s interest rate.
He further added that third element can’t set out regardless the substantial impact on the CBI’s monetary policy and its targets in the flow of foreign currency from the Iraqi oil exports and spending on military and non-governmental institutions and the size of domestic spending. D. Thuwaini further added that using a calendar view after 2003 of the Iraqi monetary policy in Iraq, it is more important considering security situations and its effects. There are many successful checks for their objectives before presenting to maintain and stabilize the local exchange rate. The process of strengthen the feasible economic growth.