A master’s thesis entitled “The Potential Impact of Money Supply and Imports on the Foreign Exchange Rate, Iraq: An Econometric Study for the Period (2005-2024)” was discussed in the Department of Economics at the College of Administration and Economics at Al-Qadisiyah University. The thesis was written by researcher Duaa Hazem Abdul Amir and supervised by Professor Dr. Nizar Kazim Al-Khaikani.
The thesis aimed to study the relationship between money supply and imports on the one hand and the foreign exchange rate on the other in Iraq during the period (2005-2025) and to understand how changes in money supply and imports affect the balance of supply and demand for foreign currencies.
The most important conclusions are that the impact of money supply (M2) has a significant positive impact on the exchange rate (EX) in the long run. This is consistent with economic theory, as the expansion of domestic liquidity puts pressure on the value of the local currency. In light of the impact of imports, it is noted that there is no statistically significant impact of imports on the exchange rate in the long run, which explains why…  Pressure on the local currency stems primarily from monetary policies rather than a direct result of import volume.

The study recommends diversifying revenue sources and reducing dependence on oil. This diversification reduces the Iraqi economy’s exposure to fluctuations in global oil prices. It also recommends monitoring the impact of money supply on the exchange rate and taking the necessary measures to maintain the stability of the local currency.