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.
Iraq Central Bank Liquidity Forecasting (November 30 – December 3)
The Central Bank of Iraq is advancing its efforts to establish comprehensive domestic liquidity management within a pegged exchange rate framework. The mission assessed the current practices and outcomes of the CBI’s liquidity absorption measures, offering recommendations for implementing an interest rate corridor. Additionally, technical assistance commenced regarding central bank liquidity forecasting to support effective open market operations.
Jordan
Jordan Foreign Reserve Management (October 20 -November 13)
The mission advised the Central Bank of Jordan to further modernize its foreign reserve management by introducing a portfolio-based framework aligned with international best practices The mission provided a phased implementation roadmap to help CBJ achieve its objectives of liquidity, safety, and profitability, while maintaining the sustainability of Jordan’s exchange rate peg.
Jordan Central Bank Communications (January 5-15)
The Central Bank of Jordan’s (CBJ) is aiming at strengthening and modernizing its communications for its monetary policy decisions. The mission provided a broad list of recommendations on both internal and external communication. As for external communications, the mission team worked closely together with CBJ staff to enhance the monetary policy press release.
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.
Syria
Syria Currency Exchange; Remote and in-person (December 10-23; January 19-22)
METAC provided technical assistance to the Central Bank of Syria to support the initial implementation of its currency exchange program. The latter involved removing two zeros from the national currency and fully replacing existing banknotes. The mission assessed the main elements of the reform, including the denomination structure, cost factors as well as operational aspects related to the organizational structure of CBS’s cash management operations, logistical infrastructure and internal controls required for an effective currency rollout.
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.
