Currency Exchange Rate Determinants: A Case Of MENA And India

Abstract

This study focuses on the determinants of Currency Exchange Rates (CERs) of the Middle East North Africa countries, and India. For the benefit of governments, companies, and investors operating throughout the MENA (Middle East and North Africa) region and India, the research can offer insightful information on the variables affecting currency exchange rates in these regions. The study employs two methods: first, it looks at what past studies have found in their research to understand the determinants of CERs. Secondly, it models the identified factors with the help of experts’ opinions using Interpretative Structural Modeling (ISM) approach. The motivation for this research arises from the ever-evolving global financial landscape, accentuated by the MENA region and India's rapid economic growth and shifting political landscapes. The findings unravel a complex web of interdependencies among the identified factors, presenting actionable insights for stakeholders like central bank intervention, financial stability, and poverty and inequality. This research contributes to both academic understanding and practitioner decision-making by discussing the practical ramifications of its insights for policymakers, investors, and business operators. It lists the future research avenues and underscores areas necessitating further exploration and refinement within this critical financial domain.