2025, Vol. 6, Issue 2, Part U
A dynamic assessment of the impact of exchange rate fluctuations on the developments of the money supply in Iraq using multivariate statistical analysis methodologies
Author(s): Mohammad Ahmed Jassim
Abstract: This research aimed to apply multi-variate statistical techniques to examine the effect of fluctuations in Iraq’s currency rates (exchange rates) upon the growth of Iraq’s money supply. Theoretical frameworks which supported this study were both descriptive/explanatory studies of central banks’ monetary data and the distinct characteristics of an open rentier economy within Iraq. Study results have shown that there exists dynamic/temporal interdependence between the money supply and the exchange rate; therefore, changes in the exchange rate will directly cause changes in the flow of monetary liquidity due to a variety of factors such as central bank intervention, dollarization, and inflationary expectations, etc. Additionally, study results demonstrated the existence of a long term relationship between the variables analyzed and that the money supply is sensitive to short-term shocks to the exchange rate. This study ultimately concluded that the use of multivariate and dynamic analytical models will enhance the ability to evaluate monetary policy, which can be beneficial in improving monetary stability in Iraq.
DOI: 10.22271/27084515.2025.v6.i2u.930
Pages: 1934-1943 | Views: 59 | Downloads: 25
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How to cite this article:
Mohammad Ahmed Jassim. A dynamic assessment of the impact of exchange rate fluctuations on the developments of the money supply in Iraq using multivariate statistical analysis methodologies. Asian J Manage Commerce 2025;6(2):1934-1943. DOI: 10.22271/27084515.2025.v6.i2u.930
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