The article investigates how economic integration and relations impact the stability of exchange rates between different countries. The researchers used various tests to analyze the mean reverting properties of real exchange rates in countries like ASEAN, MERCOSUR, and China compared to Germany and the USA. The study found that economic relations between these countries affect the stability of exchange rates, particularly in the EU and EMU periphery countries. The evidence suggests that real exchange rates are more stable when countries have strong economic ties with their major trading partners.