The Role of Exchange Rate Fluctuations in the Profitability of a Sample of Banks Listed on the Iraq Stock Exchange

The research aims to analyze the theoretical concepts of the exchange rate, its importance, and the factors affecting it, as well as to identify the theoretical concepts of the profitability of commercial banks and methods of measuring them. It then analyzes the impact of exchange rate fluctuations on the profitability of commercial banks. The Investment Bank of Iraq and the Iraqi Middle East Investment Bank were the sample of the study. The research problem was to analyze the effect of the exchange rate on the profitability of commercial banks, specifically addressing the question: Do commercial banks rely heavily on foreign exchange revenues for their profitability? The research is based on the hypothesis that there is a significant effect relationship of exchange rate fluctuations on the profitability of commercial banks. It consists of two variables: independent (exchange rate) and dependent (bank's profitability). The results of the research showed that exchange rate fluctuations may play an important role in the profitability of the Iraqi Investment Bank through the revenues of selling foreign currencies, which had a role in raising its profitability and increasing its market share. It was found that the Iraqi Investment Bank is more profitable in achieving profits than the Middle East Bank.