The Impact of Exchange Rate on Financial Market Efficiency: An Empirical Study of the Iraq Stock Exchange (2017-2023)

This study examines the impact of exchange rate fluctuations on financial market efficiency in Iraq during 2017-2023. Using data from 15 banks listed on the Iraq Stock Exchange, the research employs correlation and regression analysis in SPSS to investigate relationships between variables. Results indicate that exchange rates have a significant positive impact on trading volume and the general stock index, while showing no significant effect on the number of traded shares and market capitalization. The study recommends utilizing exchange rate policy as a supportive tool to enhance market efficiency while focusing on improving the investment environment.