The reciprocal relationship between the general budget and the exchange rate in Iraq For the period (2004-2022(

Abstract

The study aims to estimate and analyze the nature of relationship between the variables of the general budget and the exchange rate in Iraq for the period (2004-2022) via using the Granger Causality Test. Within relentless pursuit, the study strives to confirm whether there is a one direction- causal relationship between the exchange rate and the net budget of Iraq, or not. It has concluded with a number of noteworthy recommendations, the most important one is that there is an urgent need for the one direction- a causal relationship between the exchange rate and the net budget in Iraq. Additionally, it addresses the imbalance resulting from relying on a single source of financing, which is oil, in financing spending, and the need to diversify sources of income.