After the fall of Saddam Hussein in 2003, the new government issued Law No. 26 of 2006, to achieve more independence to the Central Bank of Iraq (CBI). the Central Bank of Iraq after his independence has introduced a new Monetary
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Policy Instruments that affect market liquidity (base money), like: Foreign exchange auctions, The Policy Rate and Standing facilities, CBI was successful in reducing inflation , keeping inflation under control, maintaining a broadly stable and liberal exchange rate regime. CBI allow also to increase number of commercial banks in Iraq and permit to commercial banks to determine loans interest rate