The Impact of Exchange Rate Volatility on International Trade Performance in Emerging Economies: Evidence from Brazil, India, Turkey, Indonesia, and Malaysia
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This study examines the impact of exchange rate volatility on international trade performance in five emerging economies: Brazil, India, Turkey, Indonesia, and Malaysia. Exchange rates play a critical role in international finance because they influence export competitiveness, import costs, and investment decisions. The study addresses a research gap concerning the effect of exchange rate fluctuations on trade performance within emerging-market economies. Using a quantitative descriptive methodology and secondary data obtained from the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO), the study analyzes export performance, trade indicators, and macroeconomic conditions. The findings show significant differences in trade performance among the selected countries. The evidence suggests that exchange rate stability remains an important factor influencing international trade activity and economic performance. The study contributes to the international finance literature by providing updated evidence from emerging economies and highlighting the importance of sound exchange rate policies. The results have practical relevance for policymakers, central banks, investors, and internationally active firms seeking to reduce currency-related risks and enhance trade competitiveness.
Keywords
Emerging Economies, exchange rate stability, Exchange Rate Volatility, Exports, International Finance, International Trade