THE EFFECT OF EXCHANGE RATES ON ROMANIA TRADE

Abstract

The interbank foreign exchange market is the market on which the exchange rate between the national currency and other currencies is determined by the volume and amount of transactions. The exchange rate that is formed on this market is displayed on a business day by the central bank. In the present paper we presented an evolution of the interbank foreign exchange market based on the banking legislation in the field and from the data taken from the National Bank of Romania statistics in the period January 2005 - January 2019. The evolution of foreign exchange transactions on the interbank market as well as the exchange rate of the main currencies. Through an empirical research we noticed the impact of the exchange rate on imports and exports of goods and services.

Keywords

• foreign exchange market
• interbank market
• exchange rate