RIAN AHMED JASIM,DR.QABAS HASSAN AWAD AL-BADRANI,DR. SAHAR MUHAMMAD NAJIB
DOI: https://doi.org/Introduction
The state's encroachment on the independence of the Central Bank is one of the most dangerous violations of the country's national economy, as this interference does not reflect wisdom or full awareness of what the Central Bank seeks to achieve. The deterioration of the value of the national currency is one of the most important consequences of state authorities' interference in the activities of the Central Bank, which in turn leads to significant inflation in the value of the currency and, consequently, weakens public confidence in the fiscal and monetary policies pursued by all state authorities, including the Central Bank. Conversely, state authorities must cooperate to achieve economic stability in the country, which obligates all authorities to exert all efforts to achieve coordination and cooperation among these authorities to maintain the stability of the country's economic, financial, and monetary conditions. To fully encompass the subject of our research, we will address it in detail through the following points:
The Importance of the Research: The independence of the Central Bank of Iraq is considered one of the inherent characteristics of the Central Bank, in terms of the laws regulating this legal entity. However, this characteristic is not fixed or solid, as is commonly believed, as it is subject to numerous instances of abuse, which represents a serious threat to ensuring the stability of monetary policy. The management of monetary policy in any country is crucial. Therefore, this research must address these cases in Iraqi law, both in terms of the principle of independence and the violations that have occurred in this principle. Some of these violations have been replaced by legal foundations, while others constitute a violation of the principle of separation of powers.
Research Objective: Our research aims to demonstrate the extent of the independence of the Central Bank of Iraq, in accordance with the provisions of the Constitution and applicable laws. It also aims to define the limits of interference by the legislative and financial authorities in its work, while assessing the manifestations of violations of its sovereign powers. This is done with the aim of uncovering the legal and economic implications of these violations, and then proposing solutions and mechanisms that ensure the strengthening of its independence and its protection from political and financial pressures, thus achieving monetary policy stability and protecting the national economy.
Research Hypothesis: Our research hypothesis is based on proving that the Central Bank of Iraq is essentially independent, according to Iraqi law. However, this independence does not preclude coordination, cooperation, and collaboration in the distribution of powers related to monetary and fiscal policies, particularly with the financial authority. Conversely, this independence has not prevented numerous instances of breach by the financial authority, based on the state of instability and power imbalance between the monetary and financial authorities in Iraq.
Research Problem:The principle of separation of powers is stipulated in Article (47) of the Iraqi Constitution of 2005, which states, "The federal authorities shall consist of the legislative, executive, and judicial authorities, exercising their jurisdiction and duties on the basis of the principle of separation of powers." However, there are instances that constitute a violation of this principle, resulting from the consequences of the independence of the Central Bank of Iraq. Therefore, we are faced with a real-life case that represents a breach of independence, despite the existence of regulatory legal texts. This is a major problem related to the force and enforcement of the law.
Scope of Research: Our research will address instances of abuse in the legal texts regulating the relationship between the Central Bank and the financial authority in Iraq within the framework of the 2005 Constitution.
Research Methodology: To determine the reasons for the abuses committed by the legislative and executive authorities against the bank's independence. The Central Bank of Iraq relied on an inductive approach to legal texts related to cases of abuse by both the legislative and executive authorities, as well as an analytical approach.
