Uses of the Revised Exchange Rate to Maintain Fair Value of Assets under Covid-19 Crisis

Abstract

The research aims to identify the effect of using the modified exchange rate in preserving the fair value of the assets, which are the most important economic variables in the Iraqi economy, which are the growth rate of the amount of money in circulation, the value of Iraq’s crude oil exports, the rate of inflation, the rate of growth of the gross domestic product, which expresses the rate of economic growth and the value of spending Government and the value of foreign direct investment in the presence of the COVID-19 crisis. The research found that the effect of the adjusted exchange rate value on both the rate of growth in the amount of money in circulation in Iraq and the growth rate of GDP in Iraq during the period (2004-2018) was not significant, while the significant effect of the value of the adjusted exchange rate on both the value of Iraqi exports Of crude oil in Iraq, the rate of inflation, the value of government spending, the value of foreign investment during the period (2004-2018). The effect of the revised exchange rate was evident in maintaining the fair value of assets in general and in light of the COVID-19 crisis in particular. The research recommended the necessity for the Central Bank of Iraq to use more effective monetary policies that would help increase the impact on the rate of growth of the amount of money in circulation as well as the rate of growth of gross domestic product, the need to work to diversify sources of income in the Iraqi economy and encourage development in all economic sectors and reduce dependence on oil as a main source For income in Iraq, work to develop economic and financial policies that encourage companies and individuals to invest in all non-oil economic sectors, the need to develop monetary policies that can confront emergency situations that may occur, activate the role of crisis management and increase their levels of efficiency.