The effect of the dollar exchange rate on cash liquidity in Iraqi banks

Iraqi markets have recently witnessed fluctuations in foreign currency exchange rates (the dollar) ،The exchange rate constitutes an important element in international economic relations by facilitating the process of international trade exchange. Therefore, understanding the exchange rate policy is a fundamental issue in order to identify the mechanism by which the macroeconomy works and because the exchange rate has an important role in achieving price stability. In addition, the exchange rate is considered a basic basis for oil-producing countries, as they are rentier countries in which oil exports prevail over other exports. In addition, it is the price through which the prices of local goods and services abroad, as well as foreign goods and services, are determined. Iraq follows a managed global exchange rate system in which the central bank controls the money supply through the currency selling window, where banks and companies enter as sellers or buyers of the currency, and this process affects the quantity of the money supply of the currency with the aim of controlling and meeting the exchange rate and then the level of liquidity. Available at banks. The research touched on the research methodology based on (the problem, objectives, importance, and hypothesis of the research) and the theoretical framework, which contained two aspects: the exchange rate and financial liquidity. As for the practical aspect, it reviewed the Central Bank of Iraq and its importance, as well as its responsibilities in determining the foreign currency exchange rate and the extent of its impact on the country’s financial liquidity.