In financial matters, the outer worth of a money lies within the sight of an equilibrium or surplus in the ongoing record of the equilibrium of installments comparative with the GDP, which ought to demonstrate a steady state at the very least, at the very least 4% every year. Providing that exports exceed imports within the country’s trade balance, it is necessary to rely on a sustainable increase in the annual growth rate of the gross domestic product in order to achieve this objective.
Previously, the nation had the ability to trade labor and products more than it imported, which fortified the worth of the public money, particularly the outer worth of the actual cash, during those years, particularly in the mid seventies, and the economy showed a positive state, notwithstanding the accessibility of unfamiliar stores that help the primary hindrance against expected outside factors and their consequences for the generally monetary circumstance. The strength of the national currency is linked to its external value, specifically the exchange rate, as the external value of money is directly linked to the stability of the current account of the balance of payments, especially in the long term, in addition to the stability of foreign reserves in the country, which strengthens the strength of the Iraqi dinar and the stability of the exchange rate. In the current economic system, currency prices are determined globally in two main ways: through local and international factors that control the strength of the currency in supply and demand, interest rates, Then again, the worth and security of the cash are connected to the inward worth of the public money itself. Similarly as we discuss the soundness of the outside worth of the cash in the conversion scale and its trade influence with different monetary forms, the inward worth of the cash is the opposite side of the solidness Cash and its solidarity, here the worth of the public cash is straightforwardly connected to the general cost level, and that implies the strength of labor and products communicated in cash. There is a relationship between’s cost strength and the worth of the public cash, and this requires the accessibility of a savvy financial strategy, embraced by national banks that make the development in the cash supply equivalent with the development in the GDP or public pay. The neutrality of money is the foundation of the quantitative theory of money. According to this theory, the money itself is the cause of long-term inflation because an increase in the money supply that is not proportional to an increase in the gross domestic product causes either inflation or contraction in the growth of the general price level. If the amount of money in the economy increases, this will result in an increase in the general price level and a loss of control over exchange rates, even if the state sets the exchange rate in a way that is different from The best proof of this is that the conversion scale in most Iraqi business sectors is as yet fluctuating between 149-150 thousand Iraqi dinars for each 100 US dollars, while the public authority conversion scale is 132 thousand Iraqi dinars for each 100 bucks. American, however it carried no critical advantage to the resident, but instead just examiners, specialists, merchants and a few organizations benefitted from the cost contrast.
