A Research on the Impact of the Belt and Road on the Euro Exchange Rate

With the advancement of the Belt and Road Initiative, the currency exchange rate fluctuations of various countries along the route are significantly influenced by it. The Belt and Road Initiative is based on the import and export trade of the countries along the route and has emerged as one of the crucial factors affecting currency exchange rate fluctuations. The current research focuses on the impact of the Belt and Road Initiative on the euro exchange rate. Regarding import and export trade, the economic development level of countries worldwide, the inflation rate, and the demand for money, it aims to review, investigate, and study previous research outcomes such as "Fisher's Theorem", "Cambridge Equation", and Keynes's liquidity preference theory. By citing the white paper "Jointly Building the Belt and Road: A Major Practice of Building a Community with a Shared Future for Mankind" issued by The State Council, this paper employs literature analysis and regression analysis methods to demonstrate the influence of the Belt and Road Initiative on the fluctuation of the euro exchange rate from multiple perspectives, in all respects, and at a profound level. Through the Belt and Road database and the World Bank to search for relevant data and by citing relevant literature from CNKI and WOS, we already have come to a conclusion that the Belt and Road has a significant influence on the rate of euro, good prediction results have been achieved.