Analysis of Changes in the Official Exchange Rate and its Impact on Foreign Trade in Iraq for the Period (2003-2021) Analysis of Changes in the Official Exchange Rate and its Impact on Foreign Trade in Iraq for the Period (2003-2021)

Abstract

The study aims to identify the official changes that occurred in the exchange rate from 2003 until 2021, which had a direct and indirect impact on foreign trade. In contrast, it reduces the exchange rate of the Iraqi dinar against the US dollar. For reaching this goal, the study adopted the inductive approach and using the descriptive and statistical methods in economic analysis. The study concluded that the Iraqi economy is still a one-sided economy that depends on global markets for the purpose of meeting its increasing demand. Oil revenues for the purpose of financing public spending, which makes it vulnerable to shocks and external changes related to the oil markets. Therefore, production capacities must be expanded in order to adjust the economic structure dependent on the oil sector in a way that guarantees a surplus in its domestic production through which the state can increase its exports to the outside world and increase its foreign currency earnings. Instead of relying on the oil sector to provide this outcome.