Effect of Exchange Rate Risk in the Market Value of Banks Stocks

Analytical study in a sample of banks listed in the Iraqi Market for Stocks Exchange

Abstract

The research aims to study the nature of relationship between the risks of fluctuations in currency exchange rates and fluctuation in the market value of banks stocks of the research sample, In order to prove the hypothesis two indicators were chosen,the indices of exchange rate risk and the market value of common stocks were selected , period of (42) months ,extending from January (2014) until June (2017), was chosen.
The research reached anumber of conclusion, but the most important is that the existence of correlation relationship and the affect of statistical significane pevails between the risks of exchange rate fluctuations and the market value of banks stock the sample of the study.
Finally, the research recommends that the Iraqi banking departments work to diversify their banking services to the public and not only to their revenues derived from the sale of foreign currency only.