The research shows that there is a relationship between the exchange rate gap and monetary and financial policy in Iraq. The research also shows that the exchange rate gap is the gap that occurs as a result of the difference between the official exchange rate announced by the competent monetary authority, which is the central bank of the state, and the black-market exchange rate. That is, the real sale of the currency in the local market, and that the stability of the exchange rate depends on the volume of money flows to the local market, aid, grants and foreign investments during the medium term, which may contribute to stabilizing the dollar exchange at a real and acceptable equilibrium level, and the gap between the official and parallel foreign exchange markets is still wide In many countries of the world, despite the decisions and policies taken by the relevant monetary authorities to control the price of foreign currency on the black market, and the ability of the Central Bank to control the exchange rate of foreign currency against the local currency needs a comprehensive economic system in which hard currency resources expand and their sources are multiple, especially from Foreign direct investment and enhancing the returns of sustainable economic sectors, including tourism and services, and this gap affects the monetary and fiscal policies in the world Iraq, which will be clarified as it comes in the research.