422452

THE EFFECT OF EXCHANGE RATE FLUCTUATIONS ON INFLATION IN EGYPT

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Last updated: 27 Apr 2025

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Abstract

The research focused on studying the impact of exchange rate fluctuations on inflation in Egypt, concluding that there is a positive relationship between exchange rates and inflation in many economies. When the exchange rate rises (i.e., when the value of the local currency decreases relative to foreign currencies), imported goods become more expensive, leading to an increase in domestic prices and a rise in the inflation rate. This aligns with the idea that an increase in exchange rates boosts the prices of imported goods, exacerbating inflationary pressures within the economy. The study used the Autoregressive Distributed Lag (ARDL) model, which indicated that the variables would continue to move within a certain range, with the possibility of some variables, such as inflation, rising in certain cases. These forecasts are crucial for making long-term economic and investment decisions, as the results suggest that the economy may face long-term challenges, such as rising inflation.

DOI

10.21608/jcbre.2025.422452

Keywords

exchange rate, Exchange Rate Fluctuations, Inflation, ARDL Model

Authors

First Name

Salma

Last Name

El-Shahed

MiddleName

M.A.

Affiliation

Department of Economics, Faculty of Commerce, Arish University, Egypt.

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First Name

Ahmed

Last Name

AbuZeid

MiddleName

S.

Affiliation

Department of Economics, Faculty of Economics and Political Science, Suez University, Egypt.

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Orcid

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First Name

Ahmed

Last Name

El-Bakl

MiddleName

S.

Affiliation

Department of Economics, Faculty of Economics and Political Science, Suez University, Egypt.

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City

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Orcid

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First Name

Salah

Last Name

AbuEl-Nasr

MiddleName

A.

Affiliation

Department of Economics, Faculty of Commerce, Arish University, Egypt.

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Volume

2

Article Issue

1

Related Issue

55085

Issue Date

2025-04-01

Receive Date

2025-04-14

Publish Date

2025-04-01

Print ISSN

3062-5602

Online ISSN

3062-5610

Link

https://jcbre.journals.ekb.eg/article_422452.html

Detail API

http://journals.ekb.eg?_action=service&article_code=422452

Order

422,452

Type

Researches

Type Code

3,528

Publication Type

Journal

Publication Title

Journal of Contemporary Business Research

Publication Link

https://jcbre.journals.ekb.eg/

MainTitle

THE EFFECT OF EXCHANGE RATE FLUCTUATIONS ON INFLATION IN EGYPT

Details

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Article

Created At

27 Apr 2025