The Effect of Economic Variables in the Exchange Rate of the Iraqi Dinar for the Period (1995-2015)

Abstract

This study aims to identify the trends of fluctuations of Iraqi dinar exchange rate along with diagnosis the factors that influencing it. The importance of this study is that it attempts to examine the mechanisms of impacts some economic variables on the exchange rate fluctuations of Iraqi economy as a result of the use of the Iraqi Central Bank's policies. This study based on a hypothesis that states: Iraqi dinar exchange influenced by several factors and variables, some are fact and some are because the hard cash that led to the occurrence of fluctuations. Since the cash supply has a positive as well as a significant impact on creating and finding these fluctuations. This study comprises three sections: first section presenting the theoretical framework of the exchange rate. Second section focuses on the Relationship  of the exchange rate of the Iraqi dinar with economic variables. Finally, the third section analyzes the results of impacts some economic variables on the Iraqi dinar fluctuations exchange rate for the period of (1995-2015). The study found a set of results, and based on the outcomes of the study a number of recommendations has been presented.