This research on the impact of exchange rates on economic growth examines how fluctuations in a country's exchange rate affect various sectors of its economy and identifies the nature of this impact. The study is based primarily on a literature review, data collection, and analysis. It emphasizes the role of exchange rates in key economic indicators such as the trade balance, exports and imports, financial stability, and others. The main findings indicate that a fixed exchange rate contributes to long-term stability in a country's economy, while a floating exchange rate better supports a nation's trade capabilities and export potential. Additionally, the study highlights that different exchange rate regimes have varying effects on the economy, and countries are advised to choose an exchange rate regime that aligns with their specific goals and financial policies.
Economic Growth, Exchange Rates, Monetary Policy, Trade Balance, Macroeconomic Factors.