The Impact of Exchange Rate Changes on the Balance of Payments in Iraq for the Term (2004 – 2020)

Abstract

The research objective to analyze changes in the exchange rate and analyze the Iraqi balance of payments in addition to analyzing the amount of impact that the exchange rate has on the Iraqi balance of payments in the Iraqi economy for the period (2004-2020) and to clarify the reciprocal relationship between the exchange rate and the Iraqi balance of payments. Based on the premise that changes in the exchange rate have an impact on foreign trade and the Iraqi balance of payments, this effect produces results on the economy as a whole, in light of the different circumstances the country is going through. Modern economics is aware of the size of the role played by the exchange system as it reflects the nature of the country's internal and external economic activity, as well as its direct impact on foreign trade and the balance of payments. For this reason, the research was divided into three sections, the first section deals with the concept of the exchange rate and the balance of payments, and the second part was about the development of the exchange rate and the balance of payments in Iraq, while the third and final section deals with the analysis of the impact of changes in the exchange rate on the balance of payments in Iraq.