The Phenomenon of Currency Substitution (Dollarization) in the Iraqi Economy and Its Impact on Financial Activities: An Applied Study on A Group of Private Banks and Remittance Offices in The Governorates of Salah Al-Din and Anbar

Abstract

The study aimed to identify the causes, consequences and future scenarios of dollarization on currency transfer offices and some small emerging banks. The research used a survey of more than 100 respondents working in banking and currency exchange offices in the governorates of Salah al-Din and Anbar, where the researcher used descriptive and applied statistics, specifically t-tests, to achieve the above-mentioned objectives. The results showed that the main reasons for replacing the currency (dollarization) in Iraq are the application of the hawala system (money transfer), the weakness of the Central Bank and other financial regulatory authorities in some financial issues, the increase in imports and the lack of exports other than oil exports, and finally, and most importantly, the weakness of confidence in the dinar It was found that these reasons are mainly caused by export revenues and the policies and regulations applied by the Iraqi government