Measuring The Effect of Issued Currency on Economic Growth Under The ‎Exchange Rate Volatility of The Iraqi Dinar During The Period (2020–2024‎‏(‏

  • Authors

    • Thaer Mohammed Nsaif Government Contracts Division, University of Baghdad
    • Dr. Akram Salih Yousif Nawroz University, College of Administration and Economics
    • Dr. Mamon Adam Maarof Zakho University, College of Administration and Economics
    https://doi.org/10.14419/w2r6gf40

    Received date: August 27, 2025

    Accepted date: October 7, 2025

    Published date: October 20, 2025

  • Issued Currency; Parallel Exchange Rate; Economic Growth; Indicator Saturation ‎Methods (SIS)‎.

  • Abstract

    This research aims to analyze and measure the impact of currency issuance on the ‎Gross Domestic Product (GDP) at current prices in Iraq, under the fluctuations of the ‎parallel exchange rate during the period (2004–2024). The study is based on the ‎hypothesis that monetary policy, represented by money issuance, directly and ‎indirectly affects economic growth. However, this relationship may be influenced by ‎structural variables and economic shocks that Iraq experienced throughout the study ‎period. The research employs unit root tests with structural breaks to determine the ‎stationarity and cointegration properties of the variables. The results indicate that ‎GDP and the exchange rate are integrated of order one( I (1)), while the issued ‎currency is stationary at the level. Relying on the regression approach with the inclusion of ‎structural changes using the Indicator Saturation Methods (SIS), the findings reveal a ‎positive and statistically significant relationship between issued currency and ‎economic growth, reflecting the role of expansionary monetary policy in supporting ‎economic activity. Conversely, the parallel exchange rate was found to have no ‎significant direct effect on growth, due to the Central Bank’s intervention in ‎stabilizing the dinar through the currency auction. The study concludes that issued ‎currency represents the most influential variable on economic growth in Iraq, whereas ‎the impact of exchange rate volatility remains limited, reflecting the rentier nature of ‎the Iraqi economy and its near-total dependence on oil revenues.

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  • How to Cite

    Nsaif , T. M. ., Yousif , D. A. S. ., & Maarof , D. M. A. . (2025). Measuring The Effect of Issued Currency on Economic Growth Under The ‎Exchange Rate Volatility of The Iraqi Dinar During The Period (2020–2024‎‏(‏. International Journal of Accounting and Economics Studies, 12(6), 807-813. https://doi.org/10.14419/w2r6gf40