Inflation and its Relationship with Foreign Exchange Rates in Kurdistan Region of Iraq for Time Period (2010-2018)

Abstract

This investigation object is to look at the connection between the inflation and unfamiliar trade paces of the significant monetary standards in particular (US dollar and Iraqi Dinar) money supply and gross domestic product (GDP) in the KRG during the period (2010-2018). It is remarkable that the area experiences the high inflation rate and variances in unfamiliar trade rates after 2004. The investigation results showed that there are for some time run connections between inflation rate and unfamiliar trade rates, money supply and gross domestic product (GDP) in the district during a similar period on account of the aftereffect of a vector mistake remedy model boundary positive and noteworthy. The investigation likewise demonstrated that there are for some time run connections between the conversion scale of the US dollar, against the dinar to the inflation in the area during the period showed. While the examination found a since a long time ago run connection between the conversion scale of the US dollar against the Iraqi dinar and inflation in the KRG during the period (2010-2018). In addition, there is an unfavorable since quite a while ago run connection between the conversion scale of the Euro against the dinar and inflation in the KRG during the period (2010-2018). While the examination additionally found an antagonistic since quite a while ago run connection between the conversion scale of the Iraqi Dinar against the dinar and inflation in the KRG during the period (2010-2018). Nonetheless, there is an unfriendly since quite a while ago run connection among GDP and inflation during the period (2010-2018). This relationship isn't factually huge as per the t-test, and it doesn't contrast from zero. Also, the examination understands an unfavorable since quite a while ago run connection between money supply and inflation during the period (2010-2018). This relationship isn't factually noteworthy as indicated by the t-test, and it doesn't contrast from zero. The connection between the money supply and the inflation rate isn't noteworthy on the grounds that the NRG during the period 2014 till now in money supply relies upon incomes of oil sent out autonomously which implies it doesn't rely upon the money supply in the Iraqi economy.