The significant changes in the exchange rate play a key role in increasing the risks faced by importers and exporters; this has a significant impact on the economic policies of the state. Therefore, the study used the analytical method to clarify the effect of the exchange rate on the balance of trade in Egypt during the period (1986 – 2017), how reach to balance in exchange rate and balance of trade, focusing on studying exchange rate and balance of trade and clarify the influence of first on the second, and knowing the changes that happen in exports and imports which results from the changes that happen in Egyptian exchange rate system.
This study reaches to the following results:

There is negative relation between exchange rate and exports. This means that the more exchange rate is, the less exports are. And this influence negatively on balance of payment which leads to deficit and when the verse happens there is surplus in balance of trade.
There is negative relation between imports and exchange rate; this is in contrast with the natural relation between imports and exchange rate because of other factor which influence on imports. This negative relation exists in case of luxury goods which is opposite of public role which provided that “There is positive relation between imports and exchange rate" and this happens in case of essential goods like wheat.
Exchange rate influence on balance of trade.