Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Exchange Rate Volatility and Its Impact on International Trade: Evidence from BRICS Nations
Dr. Pradeep Prajapati
15 July 2025 · Vol. 1, Issue 1, pp. 34-41
DOI: 10.65150/EP-jefrr/V1E1/2025-A005 (registration with Crossref in progress)
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What is this article about?
Exchange rate volatility has significant implications for international trade, particularly for emerging economies whose external sectors are sensitive to currency fluctuations. This study investigates the relationship between exchange rate volatility and international trade among the BRICS nations—Brazil, Russia, India, China, and South Africa.
Article at a glance
- Published
- 15 July 2025
- Volume / issue / pages
- Vol. 1, Issue 1, pp. 34-41
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
Exchange rate volatility has significant implications for international trade, particularly for emerging economies whose external sectors are sensitive to currency fluctuations. This study investigates the relationship between exchange rate volatility and international trade among the BRICS nations—Brazil, Russia, India, China, and South Africa. These countries, known for their rapidly growing economies and increasing trade openness, are vulnerable to currency instability arising from global financial movements, commodity prices, and geopolitical risks. This research analyzes whether exchange rate fluctuations affect the volume and direction of exports and imports in these nations. Using time-series data from 2000 to 2023, along with trade elasticity models and Generalized Autoregressive Conditional Heteroskedasticity (GARCH) estimates, the paper demonstrates that excessive exchange rate volatility hampers trade flows by increasing uncertainty in pricing, contracts, and investment decisions. However, the degree of impact varies across countries depending on the elasticity of their trade structures, the level of exchange rate pass-through, and central bank interventions. The study concludes with policy recommendations for exchange rate management, hedging strategies, and trade stabilization mechanisms.
Keywords: Exchange Rate Volatility, International Trade, BRICS, Trade Elasticity, GARCH Model, Currency Risk, Export Performance, Import Sensitivity, Economic Stability, Emerging Economies
Cite this article
Dr. Pradeep Prajapati (2025). Exchange Rate Volatility and Its Impact on International Trade: Evidence from BRICS Nations. Journal of Economic, Finance Research and Review, 1(1), 34-41. https://www.ep-journals.org/articles/exchange-rate-volatility-and-its-impact-on-international-trade-evidence-8bab7db1
@article{Dr2025,
title = {Exchange Rate Volatility and Its Impact on International Trade: Evidence from BRICS Nations},
author = {Dr. Pradeep Prajapati},
journal = {Journal of Economic, Finance Research and Review},
year = {2025},
volume = {1},
number = {1},
pages = {34-41},
url = {https://www.ep-journals.org/articles/exchange-rate-volatility-and-its-impact-on-international-trade-evidence-8bab7db1}
}Questions about this article
Who wrote this article?
Dr. Pradeep Prajapati.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 1, Issue 1, pages 34-41, published by EP Journals Group on 15 July 2025.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V1E1/2025-A005. Registration with Crossref is in progress.
How do I cite this article?
APA: Dr. Pradeep Prajapati (2025). Exchange Rate Volatility and Its Impact on International Trade: Evidence from BRICS Nations. Journal of Economic, Finance Research and Review, 1(1), 34-41. https://www.ep-journals.org/articles/exchange-rate-volatility-and-its-impact-on-international-trade-evidence-8bab7db1
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