Economic Indicators And Exchange Rate Regimes: A Study Of MENA Region And India

Abstract

Purpose – The study examines the correlation between economic indicators and exchange rate regimes in the Middle East and North Africa (MENA) region and India, focusing on how economic factors influence currency fluctuations and their policy implications.

Methodology – The study utilizes a secondary data research approach, analyzing publicly accessible data from reliable sources such as the World Bank, International Monetary Fund (IMF), and national statistics agencies. Descriptive and statistical methodologies were employed to explore the relationships between economic indicators, such as inflation, GDP growth, and interest rates, and their impact on exchange rate regimes in the MENA region and India.

Findings – The findings confirm that key economic indicators like inflation, GDP growth, and interest rates play a significant role in influencing currency exchange rates in both the MENA region and India. Furthermore, the study suggests that flexible exchange rate regimes provide better adaptability to external economic shocks compared to fixed regimes, thus offering insights into economic policy development.

Research Limitations – The study focuses on the MENA region and India, potentially limiting the generalizability of findings to other regions. Additionally, external factors, such as geopolitical events or unforeseen global market fluctuations, may require ongoing study as they affect exchange rate stability.

Practical Implications – The results can guide policymakers in the MENA region and India to formulate targeted policies aimed at controlling inflation, fostering GDP growth, and managing interest rates. This will contribute to more stable exchange rates and improved economic resilience against global market fluctuations.

Originality/Value – This study provides a comparative analysis of how different economic indicators impact exchange rate regimes in the MENA region and India, offering valuable insights for economists, policymakers, and researchers looking to optimize economic stability and currency management in similar regions.