Analyzing of the Impact of the Exchange Rate on the Trade Balance in the Iraqi Economy for the period (2004-2020)

Abstract

The aim of the research is about the role of the exchange rate and its success in influencing the trade balance in the Iraqi economy during the period (2004-2020), as well as using the descriptive analytical method for the variables adopted in the research. The results of the analysis of the relationship between the exchange rate and the trade balance showed that the exchange rate explained the changes in the balance (66%) and that (4%) is due to external factors that fall outside the model, and the results of the long-term response show a weak direct effect between the exchange rate and the trade balance, meaning that the increase in the exchange rate led to a weak increase in the trade balance in Iraq during a period The research is due to the weakness of Iraqi exports and their dependence on one source, which is oil exports