The objectives of monetary policy are evident through monetary growth and stability, reducing inflation rates, stabilizing prices of goods and services, leading to the stability of exchange rates, and improving the balance of payments situation. These objectives are achieved by following monetary policy tools, both direct and indirect. Achieving the objectives of monetary policy is through the regulations issued by the Central Bank of Iraq during the past years. Here, we must stop at the detail of maintaining the balance of the monetary market and work to strengthen the exchange rate of the Iraqi dinar, which represents the external value of the dinar, and confront the phenomenon of monetary substitution and what it requires of the availability of indicators of monetary stability in achieving the goals of monetary policy represented by the stability of the general level of prices and low inflation rates

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