This research sheds light on the exchange rate policy and its impact on domestic prices, which leads to an impact on economic stability, by reviewing a set of points, which aim to identify the effects that fluctuations in the exchange rate have on economic stability in developing countries in general and in Egypt in particular. Where we can conclude from this research that the relationship between exchange rate fluctuations and economic stability in Egypt is positive and significant, due to the ability of the exchange rate policy to influence the macroeconomic variables in countries. So that economic policy makers in countries must make sure and work to ensure the effectiveness of this policy in light of the favorable and unfavorable conditions in the country in order for this policy to achieve economic stability. This can be seen through what was addressed in the study of the main points in this research.