The percentage of the legal reserve and its role in the volume of cash
credit in Iraq
Samir Mohammed Kadheem Al-Khuzaie
Batool Mutar Ibadi
Department of Finance and Banking – Faculty of Management and Economics –
University of Qadisiyah/
Corresponding Author: Samir Mohammed Kadheem Al-Khuzaie Batool Mutar Ibadi
Abstract:
The legal reserve is one of the monetary policy tools used by the CBI as a percentage of deposits with commercial
banks to protect deposits from liquidity risks as well as control an important aspect of liquidity by influencing banks’
ability. To create money and credit grants, the study concerned of the effect of the legal reserve on the volume of
monetary credit in Iraq for the period (2010 – 2017), numerous of conclusions were reached the most important of
which was the reduction of the statutory reserve to 15% cash credit is granted in Iraq.
