Changing the Dollar Exchange Rate Up and Down and its Impact on the Performance of Iraqi Commercial Banks

Abstract

The study examines the impact of the dollar exchange rate on Iraqi commercial banks' performance from 2016 to 2020. It uses secondary data from 10 banks, representing 80% of Iraq's total assets. Results show a negative effect of the dollar's rise on banks' profitability, liquidity, credit quality, and operational efficiency. Conversely, a decline in the dollar's price increases banks' profitability, liquidity, credit portfolio quality, and resource efficiency. Recommendations include diversifying revenue sources, increasing coverage ratios, restructuring credit portfolios, and developing information and financial supervision systems.