Classification of the Central Bank of Iraq in light of its balance sheet structure for the period 2003-2020

Abstract

The central bank budget is of great importance because this balance sheet is linked to the goals that the central bank seeks to achieve, as the goals of the central bank are reflected in the size and composition of its budget, but we face difficulties when comparing budgets that adopt different accounting principles, so this research that we have provides a set one of the indicators that helps to make comparisons between the different budgets regardless of the accounting principles used, and therefore this research overcomes the problem of heterogeneity in the budgets, in addition to that the research in our hands provides a set of indicators through which it is possible to infer the nature of the economy. The most prominent conclusions reached by the research were that the Central Bank of Iraq was classified as a holder of foreign assets on the assets side and a source of currency on the liabilities side. The most prominent recommendations of the research came with the need to diversify the Iraqi economy by supporting non-oil sectors, because of this diversity's great role in mitigating the effects of fluctuations in oil prices on the possession of foreign currencies, and this support was represented by the establishment of a sovereign fund aimed at absorbing shocks resulting from fluctuations in oil prices.