The impact of the fluctuations in the exchange rate of the dinar against the dollar on inflation rates in Iraq for the period (2004-2024) with reference to the Kurdistan Region

Abstract

The exchange rate is one of the economic variables that affect inflation rates in Iraq and the Kurdistan Region, because Iraq relies on importing goods and services to cover market needs. The research aimed to analyze and measure the impact of fluctuations in the official and parallel exchange rates of the Iraqi dinar against the US dollar on inflation rates in Iraq and the Kurdistan Region for the period (2004-2024). Based on the descriptive, standard and comparative analytical approach and the analysis of time series data using the standard model (OLS). The results show that inflation rates in the Kurdistan Region witnessed sharp fluctuations compared to the rest of Iraq, and that the parallel exchange rate has a greater impact compared to the official exchange rate on inflation rates in Iraq, while the increase in money supply and the decrease in GDP are associated with higher inflation rates. The results show that the parallel exchange rate has a greater impact on inflation rates in the Kurdistan Region compared to the rest of Iraq