EXCHANGE RATE FLUCTUATION AND INTERNATIONAL TRADE

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ABSTRACT

This study examines the impact of exchange rate fluctuation on international trade (export) in Sub-Sahara Africa using the ARCH and Regression models on annual time series data covering January 1999 to December 2021. The study finds that there is a significant relationship between exchange rate and export in Sub-Sahara Africa. We also find that exchange rate fluctuation was found to have a significant impact on the economy of countries in Sub-Sahara Africa. This study recommends that the fiscal and monetary policies as well as their connections to trade policy, needs to be brought into closer alignment. As a result, inflation will fall and the fluctuation on currency will reduce drastically.

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