Analyze and measure the impact of exchange rate of the Iraqi dinar in the demand for the US dollar in Iraq for the period

Abstract

The exchange rate is one of the most important tools that are used to guide the country's economic policies, including monetary and fiscal policy. The exchange rate plays an important role in influencing the competitiveness of the economy, and the rest of the other macroeconomic variables, such as inflation, growth and the status of the balance of payments. The achievement of the overall balance of internal economic objectives (price stability, full employment and economic growth), the external balance (balance the balance of payments). Iraq's economy has witnessed during the period of study a wave of oscillations between the rise and fall in the level of economic variables, including the Iraqi dinar exchange rate against the US dollar between the rise and fall as a natural result of the lack of economic and monetary stability due mainly to the circumstances of Iraq due to exposure to the wars and the subsequent developments. The importance of research in the exchange rate of the currency is one of the most important economic and monetary indicators Taburan strength of the economy and its position in terms of its use as a tool to guide monetary and fiscal policy. The research aims to analyze the trends of the Iraqi dinar exchange rate for the period (2015-2003), as well as demand and supply of the US dollar during the period of research analysis, as well as to analyze and measure the impact of the Iraqi dinar exchange in the demand for the US dollar during the period in question. Contributes to the Iraqi dinar exchange rate against the US dollar portion significant demand for the US dollar, where Chirallantij standard for the relationship between the Iraqi dinar exchange rate and demand for the US dollar, the value of coefficient (R2) was (0.61) means that the independent variable (the exchange rate) may interpreted alone accounted for (61%) the remaining, which accounted for (39%) it is up to other factors, influential in the model, and these factors are outside the scope of the phenomenon in question.