Analytical Accounting Readings in the Financial Statements of the Central Bank of Iraq in Light of the High Exchange Rate of the US Dollar Against the Iraqi Dinar

Abstract

The exchange of any foreign currency in any country will inevitably lead to the weakening of the national currency, so the main goal of the research was to explain the role of the monetary policy of the Central Bank of Iraq in creating the gap between the exchange rate of the US dollar against the Iraqi dinar, and this has become the talk of the hour. It has cast a shadow on the standard of living of the Iraqi individual, and has become the focus of attention of academics, specialists and others.

 By reading the financial statements of the Central Bank of Iraq for the period from 2016 to 2022 ⁽[1]⁾. To achieve the research hypothesis, the announced financial statements of the Central Bank of Iraq were analyzed, and several conclusions were reached, the most important of which is: The Central Bank assigns the task of auditing its accounts to one of the “Big Four.” Accounting companies ^([2]), and this is considered one of the positive indicators of the reliability of financial reports, which are prepared by the Central Bank of Iraq, in addition to the increase in the graph of gold reserves from (3,627,247) million dinars, to (11,020,655) million dinars for the period from (2016-2022), Its total assets increased from (76,544,213) million dinars to (205,746,073) million dinars for the same period. However, there was a negative indicator that appeared clearly in its financial statements, which contributed significantly to the rise in prices and pressure towards inflation, in addition to the rise in the exchange rates of the dollar against the dinar in the local market, which is what caused the huge amount of cash issued by the Central Bank for circulation, as it became (87,561,568) million dinars at the end of 2022, after it was (45,231,515) million dinars in 2016.

Based on the previous conclusions, recommendations were made, the most important of which are: reducing cash issued for circulation to a minimum, working to raise interest on savings accounts, and implementing all external transfers through international money transfer companies (MoneyGram, Western Union). ^([3]), and activating deterrent laws. Combating money laundering crimes.

⁽¹⁾ Financial statements have not been published in 2023 at the time of this paper.

⁽2⁾ It is the designation given to the world's four largest accounting and professional services firms, who audit most of the world's public firms.

⁽3⁾  MoneyGram. is an American and international peer-to-peer payments and money transfer company headquartered in Dallas, Texas.

Western Union is an American multinational financial services company headquartered in Denver, Colorado.