Macro-hedging policy and its role in enhancing the credit function of commercial banks in Iraq for the period (2023-2017)

Abstract

The study aims to show the extent of the impact of the independent variable represented by the macro-hedging policy on the credit function of commercial banks in Iraq. The study problem was whether the financial soundness indicators represented by macro-hedging policies contribute to improving the credit function of commercial banks in Iraq. The Central Bank uses some macro-hedging policy tools in Iraq to maintain financial stability and reduce systemic risks. The study shows that the use of macro-hedging policy in Iraq in general is exposed to various types of risks, and perhaps the financial transactions resulting from the practice of economic activities are more exposed to them and affected by them. The variables were financially analyzed for the period (2017-2023) annually, and then the statistical program SPSS- V 26 was used to test the hypotheses according to the standard multiple linear regression model, which was appropriate for this study. The study showed a set of conclusions, including the existence of a statistically significant impact relationship for macro-hedging policy indicators on the monetary and contractual credit of commercial banks. The study recommended the necessity of using macro-hedging policy indicators to achieve financial stability and make the financial sector supportive of economic growth.