The Impact of Exchange Rate Fluctuations on The General Budget of Iraq Case Study Duration (2004-2018)

Abstract

Abstract: The exchange rates affect the public budget through its effect on the components of the public budget represented by public expenditures and public revenues, and the effect is indirectly through changes in local prices, as the effect of fluctuations in the price of exchange is overburdening or depressing the budget that it is known as a rise or fall in prices , which the state is forced to bear the additional costs or increase the proportion of revenues as a result of increasing the volume of exports through diversification, In addition, there is an inverse relationship between the dollar exchange rate and the public budget deficit, that is, any decline in the exchange rate of any country leads to a high demand for its exports, as the low exchange rate of the dollar causes the public budget deficit to increase.