Central Bank Operations - Fiscal Year 2026
Iraq
Central Bank Liquidity Monitoring
In October, METAC remotely supported the establishment of a daily central bank liquidity monitoring process. This included hands-on support for the conversion matrix between the accounting balance sheet to analytical balance sheet and ultimately the autonomous factors representation of the daily liquidity table. The results will be used directly for the liquidity forecasting mission planned for the second half of FY26. This mission is part of a project aimed at achieving effective domestic liquidity management under an exchange rate peg.
Libya
Domestic Liquidity Management under an Exchange Rate Peg (May 4-8)
The Central Bank of Libya (CBL) faces challenges including operationalizing the reunification of the West and East central bank, fiscal dominance, and widening parallel exchange rate market premium. The mission recommended completing without delay CBL’s monetary policy framework with an active domestic monetary policy implementation. This includes absorbing excess liquidity by issuing an interest-bearing liquidity absorbing instrument in line with prevailing Islamic finance regulations.
Yemen
Foreign Reserve Management
At the end of August/early September, METAC provided tailored and hands-on guidance to the Central Bank of Yemen’s FX reserves management team. Building on the 2023 mission, it focused on governance, documentation, and portfolio strategy.
