The effect of some monetary policy variables on the Iraq Stock Exchange Index

Abstract

This study aims to show the impact of some monetary policy variables represented by money supply and inflation rate on the general index of the Iraqi stock market for the period (2004-2022) by studying the reality of Iraqi monetary policy based on the Central Bank data on monetary policy variables and the Iraqi stock market by analyzing five indicators of the total index of stock prices. The trading volume index, market value, stock turnover rate and the number of companies, and standard methods were used to determine the extent of the impact of monetary policy on the stock market index during the study period (2004 - 2022). The hypothesis of the study shows that monetary policy has an impact on the indicators of the Iraqi stock market and that this impact varies according to the level of economic and social development. As for the impact it leaves behind, it varies according to the type of policy. Second, the implementation of expansionary policies will stimulate the economy and reflect positively on market indicators. Which can affect all aspects of the economy، The effect depends on the amount of liquidity. Domestic and aggregate demand affects corporate profits and thus in the Iraqi stock market index, the study reached a set of conclusions There is a direct relationship of monetary policy variables with the Iraqi stock market. During the study period). The monetary policy indicators had a significant impact on the performance indicators of the Iraqi stock market during the study period. The study also came up with a set of recommendations, the most important of which are promoting Iraqi economic growth, developing the Iraqi securities market, introducing modern technologies to the Iraqi financial market, developing plans to attract investors in the Iraqi financial markets and increasing the cultural awareness of investors.