impact of exchange rate fluctuations on the local currency in Iraq for the period 2000 - 2019

Abstract

The exchange rate is one of the most economic variables that affect the direct changes in the external balance of the economy of any country, especially the Iraqi economy. It has received great interest from specialists in the field of economics and politics, as it is one of the most indicators that suffer from multiple fluctuations, especially for countries dependent on oil exports. the Iraqi economy is accompanied by the problem of inflation that causes the instability of the Iraqi dinar exchange rate, in addition to many problems represented by mismanagement and the failure of the ruling authorities to address the prevailing conditions and the increase in the external debt ratio and the accompanying deterioration of the health aspect in light of the pandemic crisis (Corona) that caused a deficit The Central Bank of Iraq in the possibility of regulating foreign exchange. Therefore, the research attempts to show the effect of exchange rate fluctuations on the Iraqi local currency by measuring that effect on the inflation rate and money supply for the period from (2000 -2019) the government must be formally and legally committed to the IMF in its implementation.