Parallel exchange rate changes and their impact on the inflation rate in the Iraqi economy for the period (2004-2020)

Abstract

        The research aims to measure and analyze the development of changes in the parallel exchange rate and the extent of their reflection on the inflation rate in the Iraqi economy for the period (2004-2020). In order to reach the goal that the research seeks to achieve, quantitative analysis tools have been used to measure the relationship between the parallel exchange rate and the inflation rate in the economy. The research reached several conclusions, including: Changes in the parallel exchange rate exert a weak positive impact on the Iraqi economy for the period (2002-2004), meaning that changes in the parallel exchange rate work to increase the inflation rate during the research period, and the reason for this is attributed to The changes in the parallel exchange rate in the Iraqi economy have an impact on the inflation rate because the Iraqi economy is linked to the US dollar, and the rise in exchange rates leads to a rise in the prices of goods and services, and this in turn leads to inflation in the country, which is weak because during the research period there were no strong fluctuations in the exchange rate. Rather, it was relatively stable, and this made it weak.