The Impact Of The Currency Auction On The Direct Cash Credit Granted By Banks (An Applied Study Of A Sample Of Commercial Banks In Iraq For The Period 2014-2019)

The main purpose of the study is to shed light on an important financial policy adopted by the Central Bank of Iraq some years ago, which is the policy of selling foreign currency (the dollar) or as it is called (currency auction) and indicating the size of its impact on the dependent variable, which is the direct cash credit granted by banks, the study sample, The study was conducted for a sample consisting of (16) banks dealing in currency auctions for the period (2014-2019), as the study relied on the annual data of the banks, the study sample, and the annual purchases of dollars were collected for the purposes of transfers, credits and cash for banks, the sample of the study. In its practical aspect, the study included conducting a financial and statistical analysis of the financial data, specifically for the period from 1/1/2014 until December 31, 2019, and some descriptive and inferential statistics were used through the SPSS program to reach the scientific results that were relied upon to reach its basic problem. The study reached a set of conclusions, perhaps the most important of which is through what the results of the comparison between the currency purchased to enhance the assets abroad and the currency purchased for the purpose of selling cash and noticing the discrepancy between them, we conclude that there is a big gap between strengthening the stocks and selling in cash, which results in a great value for money wasted through auctions currency in favor of commercial banks. The study presented a set of recommendations, perhaps the most prominent of which is a review by the Central Bank of Iraq in the mechanism and controls of selling foreign currency (the dollar) in the currency auction to alleviate the severity of depletion of these currencies from the country, especially since the central bank is forced to cover the demand for dollars from the cash reserve in case The oil revenue deficit is to cover the growing demand for the dollar.