Analyzing the impact of foreign exchange rate fluctuations in the general budget to the Kurdistan Region-Iraq for the period 1997-2013

Abstract

The fluctuations in foreign exchange rates have great importance in monetary and financial studies due to the impact of these fluctuations in some of the other variables, which is reflected in the economic conditions especially in the fluctuations of local prices and the purchasing power at society sectors, which leads to the acquisition of a large area in the studies by specialists in this field, particularly when their effects increase day after day on many aspects of economic life in the communities. The most important results that achieved are:1 - The study showed the effect of exchange rates on the general budget through its effect on the components of the general budget of public expenditures and public revenues. The effect will be indirectly through changes in domestic prices. 2 - To clarify and determine the annual growth rates for exchange rates and expenses, revenue, and the general budget. 3 - The study showed the type of relationship and examined moral examined in the study between the variables in the standard models.4-The study showed that there is an inverse relationship between the US dollar exchange rate and the inability of the general budget.