Exchange Rate Volatility Impacts Export Volumes in Emerging Markets
The study looked at how changes in real exchange rates affect export volumes in 21 emerging markets from 2005 to 2018. The results showed that real exchange rate shocks don't always impact export volumes in these countries. However, the response of exports to exchange rate changes varies among countries, with commodity exporters showing less sensitivity. Countries with higher exchange rate volatility tend to have stronger export responses. Increasing export market share can help countries withstand exchange rate shocks. Policymakers should monitor exchange rate volatility and boost export competitiveness to navigate global trade challenges.