The study aims to analyze the effect of the US dollar exchange rate change on foreign trade in the Kurdistan Region - Iraq. The study used the exchange rate data for the period (2016-2020) published by the Ministry of Finance and Economy, the General Directorate of Customs, the Ministry of Trade and Industry, the General Directorate of Trade, the Directorate of Internal Trade, and the Directorate of Commercial Services. The study adopts the descriptive analytical method to analyze the causal relationship between the US dollar exchange rate and foreign trade in the Kurdistan Region - Iraq for the period taken. The study reached several results, the most important of which are: there is a causal relationship in both directions between exports and the US dollar exchange rate, between imports and the US dollar exchange rate, between the trade balance and the US dollar exchange rate, between imports and exports, and between the trade balance and exports. Finally, the study presented several proposals, the most important of which are: The authorities concerned with the exchange rate of the Iraqi dinar, especially the Central Bank of Iraq, must fix the value of the Iraqi dinar against the US dollar as a key factor to increase commercial activity and confidence in the Iraqi economy. The KRG and the Iraqi government should try to increase domestic production to increase exports, especially non-oil exports.