The Impact of Certain Macroeconomic Variables on Exchange Rates – A Comparative Study Between Iraq and Algeria for the Period (2006–2022)

This research, titled “The Impact of Certain Macroeconomic Variables on the Exchange Rate – A Comparative Study Between Iraq and Algeria for the Period (2006–2022)”, aims to measure the impact of selected macroeconomic variables on the exchange rate. Four key variables were chosen for analysis: public debt, public budget, the Consumer Price Index (CPI), and Gross Domestic Product (GDP). The study seeks to determine whether these variables have a positive or negative impact using modern econometric methods, particularly the ARDL methodology, deemed suitable for measuring these effects. The research problem stems from the economic crises these countries face, marked by rising public expenditures and declining revenues, leading to budget deficits. Furthermore, both economies rely heavily on oil as the primary source of budget financing. Thus, these countries must diversify their sources of income, leveraging their significant agricultural potential and rich geographic resources to mitigate the volatility of global oil prices.