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. Hypoth- esis 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 sug- gests a significant association between the independent and dependent variables, except for GNP. The study rec- ommends 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.