Impact of the Manipulation of Currency on

the exchange rate of the country

Abstract:
It was known in the proposal for the exchange rate )ER( and what is ER types
and regulations, as the ER expresses the value of the currency of one country
against another country, as it also addressed the subject of manipulation of the
ER through the currency war and studies in this proposal whether the currency
war affects the ER of the state and concluded that it leads to reducing or raising
exports, which positively affects the value of the currency of the country that
deliberately affected this effect.

To:
Dr. Sami Al Smadi
By:
Ahmed Qasim Al Khateeb
5-2023
Introduction

We must know that money

is created or issued, in other
words, money is controlled
by a central bank or a
national government, and this
is present in all modern economies. As individual countries
develop currencies, although this is not recommended in terms of
exchange rate policy, since countries trade goods and services
with other countries (i.e. buying and selling goods and services),
it is important to clarify and think about how to do this
definitively. The exchange of a country's currency is the currency
of a country.

In the exchange rates between countries, there is manipulation as

the rise and fall of the currencies of some countries is subject to
the relationship between supply and demand, which is the
problem of currency wars between countries. Imports from a
certain country, which leads to the depreciation of the currency
of that country, which leads to the cessation of commercial
activities in that country, which leads to an increase in exports
from the country in which the activity takes place, which leads to
an increase in the value of the currency. An example of this is the
currency war between the United States and China.

Research Problem
Research Aim & Objectives:
The study focuses on understanding and knowing exchange rates
in terms of understanding their types, explaining their systems,
mentioning the pros and cons of the regulations, and also
knowing how exchange rates are manipulated, as manipulation
may affect the relations of some countries. We will focus on one
of the manipulation roles, which is the currency war.
The objectives of this research are presented in the following questions:

How is the change in the exchange rate calculated?

Is there an investment in exchange rates?

Is it good for a currency to have a high value?

What is the point of manipulating the exchange rate?

Research Importance:
Previous studies were characterized by dealing with the issue of
development and the reciprocal relationship between the
exchange rate and the interest rate. In this study, we will study
the effect of manipulating the exchange rate and does it have a
direct effect or not.

Theoretical framework:
Many questions and ideas revolve around us knowing the
difference between exchange rates and changes in exchange
rates.

In the research, we will find the difference between them and

find how to express both the exchange rate and the change in the
exchange rate.

Is there a difference between the exchange rate and the change in

the exchange rate?
LITERATURE REVIEW:
 Huang, Y. S., & Guo, F. (2006). Covered Interest Parity and
Market Volatility: Asian Evidence. Advances in Financial
Planning and Forecasting, 2, 147-169. Evidence from Asia This
study involves conducting an (empirical test) to measure the
impact of dual benefits on capital flow ratios and their variability
in seven East Asian economic centers using prepared statistical
models. The research shows that the capital markets of Hong
Kong and Singapore have both experienced capital flows, while
the remaining economic centers have experienced limited
openness. The study shows that, except for Hong Kong, there is
financial integration among these economic centers due to the
liberalization of these markets. And this study will contribute to
the researchers' thinking about confounding the doubling of
interest rates with the implied volatility of exchange rates.
 Horobeţ, A., Dumitrescu, S., & Dumitrescu, D. G. (2009).
Uncovered Interest Parity and Financial Market Volatility.
Romanian Economic Journal, 12(32). The researchers
found that exchange rates follow a dual interest rate model,
and the researchers also found that the relationship between
dual interest rates and exchange rates follows a variable
relationship. The study shows the relationship between
exchange rates and interest rate differentials using an
uncovered interest rate parity model. According to research,
there exists a direct correlation between the fluctuations of
daily interest rates and currency exchange rates, with an
increase in the former leading to an increase in the latter.
 Graña-Alvarez, R., Lopez-Valeiras, E., Gonzalez-Loureiro,
M., & Coronado, F. (2022). Financial literacy in SMEs: A
systematic literature review and a framework for further
inquiry. Journal of Small Business Management, 1-50. The
primary objective of this article is to recognize the variables that
impact the course of movement in exchange rates and to
determine if the term "currency wars" is an apt description for
such actions. The various types of "currency wars" prevalent in
today's global economy have been outlined, and their influence
on financial markets and national economies has been examined.
To verify the hypotheses put forth, a critical analysis of the
current literature on currency wars has been employed.

 From, M. D. P. I. An Uphill Battle: Financial Education in

Romania amid Societal Transformation pp. 1-19 Downloads
Radu Șimandan, Beatrice Leuștean, and Răzvan Mihai
Dobrescu The Consequences of a Switch to Free-to-Play for
Overwatch and Its Esports League pp. 1-16 Downloads
Thomas Newham, Nicolas Scelles and Maurizio Valenti
Market Orientation and Hotel Industry: Literature Review
and Implications for Periods of Market Turmoil pp. 1-16
Downloads Carlos Sampaio and Mónica Régio Institutional
Investors... The exchange rate is related to several factors as it is
sometimes influenced by them and sometimes by them.
Therefore, this study aims to examine the relationship between
fluctuations in the RMB/USD exchange rate and changes in the
volume and direction of internal trade by monitoring the trade
balance of the Americas with China. Against the backdrop of
international currency wars. Changes in the RMB-USD exchange
rate and developments in the U.S. domestic trade balance with
China between 2000 and 2016, taking into account the onset of
the trade war, i. H. The International Currency Wars of 2010 and
examining the impact and nature of relationships between study
variables by creating standard models that incorporate estimates.
 Brahmbhatt, M., Canuto, O., & Ghosh, S. (2010). Currency
wars yesterday and today. The threat of a global currency war
has been sparked in recent months by a resurgence of
"quantitative easing" in the US, capital re-flows to developing
countries, and strong appreciation pressure on emerging market
currencies. This economic premise considers some of the
arguments and concludes The current loosening of US monetary
policy is an effective hedge against the risk of global deflation.
However, developing countries are under increasing pressure to
move towards greater monetary policy autonomy and exchange
rate flexibility, and to adopt the necessary institutional and
structural measures to support this flexibility. Such reforms will
take time.

 Alfaro, L., & White, H. (2013). Brazil's Enigma: Sustaining

Long-Term Growth & Currency Wars. In February 2013,
G20 finance ministers met in Moscow, Russia, to discuss
growing concerns about a possible international currency
war. There has been speculation that certain countries
deliberately devalue their currencies to increase their
competitiveness in the world market. Emerging markets
claim that the loose monetary policies of major central
banks such as the Federal Reserve, European Central
Bank, and Bank of England are causing severe and
damaging spillover effects such as currency appreciation,
falling exports, and higher inflation in advanced
economies. Instead, major central banks have insisted
that such measures are necessary to boost domestic and
international economic growth. Will these measures
succeed in restoring growth? Can Emerging Markets
Treat Loose Monetary Policy as a Beggar-thy-neighbour
Measure? How should developing countries respond?
Methodology: Cross-sectional Analysis of the study
1. Research Design:
This study uses a cross-sectional analysis to examine the
effects of currency manipulation on national exchange
rates. The research design is to collect data at specific
points in time to assess the link between currency
manipulation and exchange rate volatility.

2. Data Collection:
Data for this study were collected from a variety of
sources, including financial databases, economic reports,
and central bank publications. Key variables of interest
include domestic currency exchange rates and indicators
related to currency manipulation such as B. Foreign
exchange reserves, capital controls, and trade policies.

3. Sampling:
The study selected a representative sample of countries
suspected or confirmed to be involved in currency
manipulation. Selection criteria are based on previous
research, expert opinion, and assignments from
international organizations.

4. Variables:
The dependent variable in this study is the exchange rate
measured against major international currencies. The
independent variable is the degree of currency
manipulation, which is assessed using various indicators
and indices available in the literature.
5. Data Analysis:
The collected data is analyzed using statistical techniques
such as regression analysis to examine the link between
currency manipulation and exchange rate movements.
The analysis takes into account other relevant factors
such as macroeconomic indicators, global market
conditions, and monetary policy actions.

6. Limitations:
It is important to recognize the limitations of cross-
sectional analysis. The results of this study may be
subject to omitted variable bias, indigeneity, and other
metrological issues. In addition, the analysis is dependent
on available data and may have limitations in terms of
accuracy and coverage.

7. Ethical Considerations:
To maintain ethical standards, the study will strictly adhere to
guidelines regarding the privacy of data, confidentiality, and
proper citation of sources. All data utilized in the study will be
obtained from publicly available and meticulously documented
sources.

8. Significance:
The objective of this study is to enhance comprehension
of the effects of currency manipulation on exchange
rates. The outcomes of this research may have significant
implications for policymakers, financial institutions, and
international businesses. By examining the effectiveness
of currency manipulation as a policy instrument, this
investigation may offer valuable insights into the
implications of such manipulation for the stability of
exchange rates.
The following methodology provides a basic structure for exploring
the effects of currency manipulation on exchange rates through
cross-sectional analysis. It should be noted that the methods and
intricacies of this process may differ depending on the specifics of
the research and the data available.

The type of study described in the methodology is
an experimental study. More specifically, it's a cross-
sectional study design. Cross-
sectional studies involve collecting data from
a specific population or sample at
a single point in time to examine the relationship betwee
n variables of interest. In this case, the study aims
to dissect the impact of currency manipulation
on exchange rates by examining data
from different countries at a particular moment.
The population of the study
would generally be the countries or husbandry that engag
e in currency manipulation and
whose exchange rates are being examined.
The specific countries included in the population
would depend on the compass and focus of
the exploration. It
could include countries from colorful regions or be limite
d to a specific geographical area or profitable group.
The selection of countries would be grounded on factors 
similar to their currency programs, the position of
currency manipulation, the vacuity of applicable data,
and the exploration objects.

The Sampling of the study

More than one sample is selected, and the samples will
be countries that have a stable exchange rate, meaning
that they follow a fixed exchange rate, and they will be
studied whether their exchange rate system is changed,
can they manipulate the exchange rate or not. currency
manipulation can impact the exchange rates of
a country in several ways.
By instinctively adding or dwindling the value of a
currency, it can affect
exports, significance, profitable growth,
 and affectation rates. A weaker currency
can make exports more competitive, increase profitable g
rowth, and lead to advanced affectation, while
a stronger currency
can lead to dropped profitable exertion, dropped affectati
on, and dropped competitiveness of exports.

References:
JAMES CHEN,(2022).Investopedia web. exchange rate. Received from
https://www.investopedia.com/terms/e/exchangerate.asp

James Mackintosh (28 September 2010). Currency War Financial Times. October
2010.

International finance I slide

Central Bank of Jordan, Egypt & Saudi Arabia

Huang, Y. S., & Guo, F. (2006). Covered Interest Parity and Market Volatility:
Asian Evidence. Advances in Financial Planning and Forecasting, 2, 147-169.

Horobeţ, A., Dumitrescu, S., & Dumitrescu, D. G. (2009). Uncovered Interest

Parity and Financial Market Volatility. Romanian Economic Journal, 12(32).

Graña-Alvarez, R., Lopez-Valeiras, E., Gonzalez-Loureiro, M., & Coronado,

F. (2022). Financial literacy in SMEs: A systematic literature review and a
framework for further inquiry. Journal of Small Business Management, 1-50.

From, M. D. P. I. An Uphill Battle: Financial Education in Romania amid Societal

Transformation pp. 1-19 Downloads Radu Șimandan, Beatrice Leuștean, and
Răzvan Mihai Dobrescu the Consequences of a Switch to Free-to-Play for
Overwatch and Its Esports League pp. 1-16 Downloads Thomas Newham, Nicolas
Scelles and Maurizio Valenti Market Orientation and Hotel Industry: Literature
Review and Implications for Periods of Market Turmoil pp. 1-16 Downloads Carlos
Sampaio and Mónica Régio Institutional Investors...

Brahmbhatt, M., Canuto, O., & Ghosh, S. (2010). Currency wars yesterday
and today.

Alfaro, L., & White, H. (2013). Brazil's Enigma: Sustaining Long-Term

Growth & Currency Wars.