The impact of inflation and interest rates in exchange rates

Abstract

The parallel exchange rate to official exchange rates is one of the economic and financial indicators that expressing the strength of the economy of any state, whether in developed or developing countries, the exchange rates are affected by political and economic multiple factors, among these economic factors, inflation, and interest rates prevailing in the market, which reflect the impact of the exchange rate of the national currency in the parallel market to the national official exchange rate, this research focuses on the impact of inflation and interest rates in the parallel exchange rate for the period (1992 - 2001) in Iraq, and some neighboring countries.

Keywords

inflation