The effect of the exchange rate on stimulating the efficiency of the financial performance banking institutions

Abstract

 the knowledge of the impact of exchange rate changes on the financial performance indicators of banks, the most important of which is the liquidity index of a sample of Iraqi commercial banks during the extended period (2011-2020), as the results of the analysis of the composite growth of indicators compared to the growth of exchange rates showed an inverse relationship between exchange rates and a decrease in liquidity for most sample banks. The study is in addition to the decline in the assets of the banks as well as the capital. The results of the financial analysis also showed the nature of the investment activity of the banks, which depends on speculation and quick profit in the stock market, and the lack of interest of the banks in the real productive investment. Also, the results of the standard analysis clarified and confirmed the inverse relationship between changes in the foreign exchange rate and the liquidity index