AMF strengthens monetary policy
Part of the "Central Banks Transparency and Monetary Policy Reporting" course in Abu Dhabi
24 March 2019 10:54 p
ABU DHABI - The "Central Banks Transparency and Monetary Policy Reporting" session, organized by the Institute for Economic Policy in the Arab Monetary Fund in cooperation with the German Central Bank, opened at the Fund's headquarters in Abu Dhabi on March 24-27, 2019.
According to a press release issued on Sunday, monetary policy is one of the most important areas of macroeconomic policy that regulates the relationship between money and economic activity in order to stabilize prices, thus creating a suitable environment for the exercise of various economic activities and laying the foundation for sustainable economic growth.
The monetary policy frameworks depend primarily on the development of the state's financial structure and the economic situation.
The central banks usually adjust money supply or monetary expansion to suit the needs of market participants.
He stressed that the success of central banks in achieving monetary stability depends on a set of internal and institutional factors and conditions related to the structures of these banks and their development and the quality of their human resources.
The IMF noted that this requires a set of objective conditions, most notably the degree of independence of central banks, the credibility of their policies and procedures, and a high degree of transparency in the work of these banks, which increases confidence in economic policies.
It also provides a climate of certainty that helps keep inflation rates at medium and long-term targets and leads to productive investments away from quick-return considerations and speculation.