The impact of Currency flactuations in the Value of the Financial Market index: Analytical Study in Iraq Stock Exchange

Abstract

             The swing in currency exchange rates is one of the most important economic problems faced by many countries, as well as their great impact in most decisions, especially financial ones, which are the most important decisions of financing and investment, so the subject of the research to study the impact of the exchange rate Fluctuation in the value of the financial market index, reflecting the strength of those decisions, with the selection of Iraqi Dinar to search, depending on the currency and financial market to be a sample of the research. The goal of the research to know the impact of fluctuations of the Iraqi exchange rate in the value of the index of the Iraqi market for securities, and to reach this goal, it has been identified a problem in the extent of the impact of volatility exchange rates in the value of the index .On the basis of that problem, it has been identified two main hypotheses : "There is a significant effect with a statistically significant for the variable of US dollar exchange rate against the Iraqi dinar in the value of the Iraq Stock Exchange index." The study concluded with a set of conclusions and recommendations. The most important of them is "There is a negative correlation between the exchange rate of the US dollar against the Iraqi dinar in the value of the index of the Iraqi stock market.

Key words: Index of stock Market,Exchange rate.