Analysis and measurement of the impact of exchange rate changes and their repercussions on local investment in Iraq for the period (2004-2022)

Dr. Faten Saeed Hameed

doi:10.61132/anggaran.v2i4.989

Authors

Dr. Faten Saeed Hameed College of Administration and Economics / Wasit University

DOI:

https://doi.org/10.61132/anggaran.v2i4.989

Keywords:

Exchange rate changes, Local investment

Abstract

The research is concerned with analyzing and measuring the impact of exchange rate
changes and their repercussions on local investment in Iraq during the period (2004-2022), as
the relationship between them is affected by global economic conditions such as high or low
oil prices and demand for the exchange rate internationally, as the response of the investment
sectors in Iraq to changes in the exchange rate varies, as the decline in the exchange rate
encourages investment in the export sector and proves investments in the import-dependent
sector, unlike its rise, which negatively affects the local economy The authorities are working
to take some measures and procedures such as providing financial support and incentives to
support projects and thus promote local investment, as well as the political and security
fluctuations in Iraq that affect investor confidence and investment decisions and thus affect
economic stability, and the relationship between local investment in Iraq and exchange rate
changes is somewhat complicated as they are affected by each other, so the monetary
authority and investors must understand this relationship and understand its strategies in a
way that enhances and supports the investment climate in the Iraqi economy, Domestic
investment and the exchange rate significantly affect the economic relations described in the
ARDL model , so it is recommended to develop fiscal and monetary economic policies that
support domestic investments and improve exchange rate stability to achieve more
sustainable economic results.

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