Analyzing and Measuring the Impact of Exchange Rate Fluctuations on Economic Growth in Iraq for the Period (2004-2022

Abstract

This study investigated the exchange rate on Iraq’s economic growth situation. It examined the exchange rate’s effect on GDP, GNP, and INF. An ex-post facto research design was used to collect secondary data from the Central Bank of Iraq and macro trends Statistical Bulletin from 1 January 2004 to 30 November 2022. Hypothesis analysis used Least Squares. Exchange rates affect GDP, GNP, and INF. As a result, GDP can be used as an essential basis for economic development, and the GNP is a vital factor for economic infrastructure to change people’s living conditions. The exchange rate positively and significantly impacted GDP, and the analysis suggests a significant association between the independent and dependent variables, except for GNP. The study recommends that Iraq’s currency authority manage exchange rates in response to the U.S. dollar to boost economic growth. Price stability can also boost Iraqi economic growth, boosting the dinar’s value.