The Impact of Exchange Rate Risk Hedging Strategies on the Financial Performance of Commercial Banks

Abstract

This research aims to analyze the impact of exchange rate risk hedging strategies on the financial performance of commercial banks, relying on data from the Central Bank of Iraq, the Central Statistical Organization, and the Iraq Stock Exchange. The research assumed the descriptive analytical approach to analyze data for the period 2021-2025. The research model was built and tested using content analysis, correlation coefficients, and modeling. The research reached conclusions, the most important of which are there is positive effect of hedging strategies against window and market foreign exchange rate risks on financial performance. This indicates that decisions related to dealing with foreign currency exposure are the most important factors affecting performance.