The Impact of the Reciprocal Relationship Between Oil and the Exchange Rate and Its Repercussions on the Sustainability of Public Debt in Iraq for the Period (2005-2022)
Year: 2024
Type: article
Abstract: The Oil Sector is of Great Importance to oil-producing Countries Compared to other Sectors.It still Constitutes the Largest Percentage of their Exports, the most worthy Financier of their Budgets, and the most Important Guarantor of Foreign Currency Income.As Far as Iraq is Concerned, Since the Discovery of the First Oil field, the Start of its Extraction, and its Export in Commercial Quantities, the Political and Economic Scene in the Country has Gone through many Transformations.Since then, the Country's Oil Resources have Become One of the Important Pillars on which the Country Relies in Building its Development Base, by Supporting the General Budget with Financial Surpluses.The General Budget has Become an Indicator of Oil Revenues Par Excellence, which has Resulted in a Defect in the Country's Production Structure.It Seems that the Culture of Financial Management in Dealing with these Revenues does not Go beyond Considering them as Current Revenues to Investment Revenues that Require Ideal Dealing in Reinvesting part of them in Capital Assets and Building a Production base that Contributes to Replacing Imports.Thus, Oil Revenues have Become It is Nothing more than an Accounting Process Consisting of an Account Transfer Between the Creditor and the Debtor side Between the Financial Authority on the One hand, and the Central Bank on the other hand, through what is called the Dinar Monetization Process.This deficiency in the Financial System in Dealing with Oil Financial Surpluses has Spread to non-oil Production Institutions.Hence the Importance of this Research in Knowing the Impact of Oil Revenues and Exchange Rates in Supporting the Balance of Payments, and their Impact on the Path of Sustainability of External Debt
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4410023385