Baghdad: The Parliamentary Finance Committee recently convened a joint meeting with Nizar Nasser Hussein, the Governor of the Central Bank of Iraq, and his deputy, Shaima Abbas, to deliberate on crucial financial and monetary issues. These discussions centered around monetary policy, mechanisms for financing the budget deficit, and identifying viable solutions to the ongoing financial crisis.
According to National Iraqi News Agency, Committee Chairman MP Uday Awad underscored the necessity of establishing advanced mechanisms to enhance monetary policy and support financial stability. The aims are to maximize revenues, thus strengthening the country’s financial economy. Key topics of the meeting included inflation indicators, monetary and financial reserves, salary payment delays, and the Central Bank’s strategy to maximize revenues. Participants also examined the results of foreign currency sales and exchange rates in the local market, alongside the provision of currency exchange services to travelers at official rates.
The committee explored various strategies for financing the budget deficit, such as government loans or discounting treasury bills, and assessed the potential impact of these measures on the monetary system and the national economy. Central Bank Governor Nizar Nasser Hussein provided insights into the bank’s monetary policy directions for future fiscal years, emphasizing liquidity management and the role of the monetary policy rate. The discussion also covered how monetary policy influences economic activity and the importance of transitioning to support the real economy.
Additionally, the meeting delved into the development of the banking sector and economic reforms, examining their effects on financial and monetary performance. The Central Bank’s final accounts for the 2025 fiscal year were reviewed, focusing on the financial sustainability of foreign exchange reserves. This review aims to enhance the bank’s ability to address economic challenges and maintain monetary and financial stability.