دور الجهاز المصرفي في تمويل التجارة الخارجية في ظل تقلبات سعر الصرف – العراق حالة دراسية

The role of the banking system in financing foreign trade in light of exchange rate fluctuations - Iraq, a case

This research aims to analyze the role of the banking system in financing foreign trade in Iraq during the period (2004-2022), focusing on the impact of exchange rate fluctuations on this role. The importance of the research lies in shedding light on the challenges facing Iraqi banks in supporting foreign trade activity, especially in an economic environment characterized by monetary instability and exchange rate fluctuations.
The research relied on the descriptive and analytical approach using economic and banking data related to foreign trade and the exchange rate, in addition to analyzing the monetary policies followed by the Iraqi authorities to enhance currency stability and support foreign trade. The role of government and private banks in facilitating foreign trade financing operations was also reviewed, whether through documentary credits or foreign transfers.
The research concluded that exchange rate fluctuations directly affected the efficiency of the banking system in financing foreign trade, as they led to an increase in the cost of financing and reduced traders’ confidence in economic stability. Despite the efforts of the Central Bank of Iraq to stabilize the price of the dinar against the dollar through the foreign currency auction, the impact of global and local fluctuations remained clear, which affected the ability of banks to meet the needs of traders.
The research recommendations included the necessity of working on directing public revenues based on a financial policy that aims to achieve balance in the process of financing the real sectors of the national economy, especially in the areas that stimulate its economic growth, while working to increase its contribution to the structural diversification of the economy, and developing the infrastructure of the banking system in order to improve its ability to finance foreign trade. It also stressed the necessity of activating the flexible exchange rate mechanism to be compatible with financing the demand for imported goods because this mechanism is lacking in its impact on the basis that the demand for imported goods is affected by total spending to a greater extent.