Impact Of Selling Foreign Currency On Inflation in Iraq

Abstract

The study aims to identify the impact of foreign currency sales on inflation in Iraq, or what might be called "one-way currency auctions.": sales of the currency sell window. It has many advantages as (a source for financing government trade and private sector trade in order to import goods and services / unify multiple exchange rates /a direct intervention tool to achieve stability in the value of the Iraqi dinar by defending a equilibrium exchange rate as a “nominal stabilizer of inflationary expectations” / monetary sterilization,, etc.). However, at the same time, it is not without drawbacks such as (declining monetary reserves / smuggling foreign currency abroad / wasting the share of future generations in enjoying the resources of national wealth, etc.). I reached results : the most important are (maintaining the independence of the central bank of Iraq / establishing a parallel market for the dollar between banks / encouraging national exports and expanding their base,, etc.).