The Influence of The Exchange Rate on Imports – Romanian Case Study

Abstract

The worldwide economy is in a continuous process of globalisation and the free circulation of people, workforce, capital, goods, and services is unrestricted, therefore nothing can remain outside the currency transactions. In this context, the present paper develops a practical analysis on the Romanian territory, aiming to debate concrete aspects related to the exchange rate of RON in relation with the EUR currency. The article highlight whether there is a link between exchange rate fluctuations and imports as a component of foreign trade. The main objective of the present paper is represented by the case study on which the analysis is focused – the determination and formulation of an appreciation on the causal and functional connections between the exchange rate of RON in relation with the EUR currency and a variable of the external trade, the imports.

Keywords

• exchange rate
• imports
• regression