The impact of exchange rate regulations on Iraq's merchandise exports for the period 1990-2019

Abstract

The exchange rate has great importance in all global economies because of its clear impact on macroeconomic variables and its prominent role in controlling the volume of foreign trade, especially exports. Therefore, it is possible to know the status of the country’s trade balance if it is in favor of exports, and this means achieving a surplus, and if it is in favor of imports, then it achieves a deficit. The exchange rate is one of the most important monetary policy tools that the state has to protect the national economy from the external influences to which it is exposed. Therefore, the importance of the research comes from the necessity of explaining the economic effects of exchange rate systems and their role in developing commodity exports. As for the research problem, it has shown the extent of the impact of exchange rate systems as a variable. It is independent in the dependent variable represented by merchandise exports, while the research hypothesis focused on an important question: Do exchange rate systems have an impact on the overall national economy? The research aimed to demonstrate the impact of the exchange rate on commodity exports to Iraq. The research methodology in the analysis was based on shifting from the deductive approach in analyzing the theoretical side of the research to the inductive approach that aims to estimate the efficiency of commodity exports through statistical data. The research concludes with the standard statistical approach and the use of standard analysis methods by relying on a program to analyze data on exchange rate fluctuations and their impact on commodity exports to Iraq. The research relied on temporal and spatial boundaries. The temporal boundaries covered the time period between 1990 and 2019, while the spatial boundaries focused on Iraq. The structure of the research consisted of three sections: The first section: The theoretical framework of the exchange rate system. The second section: The development of drainage systems in Iraq. The third topic: the reality of commodity exports in Iraq. The fourth topic: econometric analysis of the data under study.