Measuring and analyzing the determinants of the parallel exchange rate in Iraq Period (2003-2018)

Abstract

The exchange rate policy is a crucial tool in linking the national economy to the global economy. The importance of proposed research comes from identifying the variables that are affected by the exchange rate in Iraq. Moreover, identify the most influencing variables in. The research was launched from the hypothesis that there are economic factors that vary in their impact on exchange rates in Iraqi economy during the period of research.Furthermore, the research included analyzing and measuring the parallel exchange rate determinants in Iraqi economy by relying on data from its primary sources and using modern standard methods in studying the relationship between the parallel exchange rate and some of the variables specified for it. And identifying the characteristics of the time series of these variables, stability test has been applied, as well as using Some tests have the validity of the proposed standard model such as the LM Test, Heterogeneity (Unsteadiness), and the Normality Test. The research came out with a set of conclusions, the most important of which is the direct relationship between the parallel exchange rate and each of (foreign assets, the general budget, imports) and the research provides proposals to the decision-maker by analyzing the results