Abstract

The exchange rate is one of the tools which is used in guiding the country's economic policies, whether monetary or financial ones, and because Iraq is one of the oil countries, it resorted to bind the Dinar to American dollar to maintain cash stability in front of the most important currencies in the returns of its exports and its imports payments, the exchange rate have several types, the effective exchange norminal which includes the official exchange rate, the parallel exchange rate and the real effective exchange rate, in addition to that the systems of exchange rate are two types fixed and floating , the exchange rate in Iraq is fixed.
Before the year (2003), the Iraqi dinar exchange rate fell sharply in the parallel market against the dollar as a result of wars and the subsequent economic blockade, however, after the independence of the central bank in the year (2003) may enjoy the rising value of the Iraqi dinar and then relatively stable against the dollar and that by buying and selling foreign currencies in a daily bank auction. However, it may witness a fluctuation in the exchange rate both rise or fall in the parallel market as a result of economic and non-economic factors. Hence, the aim of the research is to study the conceptual framework for the exchange rate in terms of the concept and sorts, as well as stating the factors that influencing it, and taking ways that may contribute to maintaining the stability of the exchange rate and then its value.