Measuring and analyzing the fluctuations of crude oil prices on the Iraqi dinar exchange rate for the period (2004-2022)

Abstract

   The Iraqi economy is closely linked to crude oil prices, as Iraq relies on oil revenues to a high degree of 85% Consequently, fluctuations in oil prices in the international market significantly affect the instability of the Iraqi economy, including the exchange rate of the Iraqi dinar against the US dollar, Because the rise and fall of oil prices controls the rise and fall of the dollar supply inside Iraq against the Iraqi dinar through oil revenues denominated in dollars, the oil price variable is one of the main factors affecting the value of the Iraqi dinar, Therefore, this study aims to analyze the economic relationship between the price of crude oil and the exchange rate of the Iraqi dinar against the dollar using an analytical and quantitative approach. There are other variables that also affect the exchange rate of the Iraqi dinar, including inflation. A rise in the general level of prices leads to a decline in the value of the Iraqi currency.