The devaluation of the national currency is a measure resorted to by the Central Bank to achieve several economic goals. Foremost is improving the trade balance and supporting the growth of productive economic sectors that suffer from foreign product competition due to the commodity dumping policies of the exporting countries. According to the Central Bank Law No. (56) of (2004), in which Article (4-a) stipulates the formulation of monetary policy, including the foreign exchange policy, there is no authority for another party to change the exchange rate. On that basis, government agencies interfere in determining the exchange rate. The reasons that called for the government to adopt this rate will be addressed. This study will also shed light on the effects resulting from this price change on the public finance sector, the monetary sector, the real sector, and low-income people.
Causes of Financial Dominance – Oil and its Effects on the Exchange Rate in Iraq
Author: Editing & Research Department
87
