The Impact of Exchange Rates and Inflation on the International Trade of GCC Countries

This research paper examines the critical influence of exchange rate fluctuations and inflation on the dynamics of international trade within the Gulf Cooperation Council (GCC) countries. By analyzing the relationship between the macroeconomic factors, the study aims to provide insights into how currency stability and price levels impact trade competitiveness and economic integration in the region. The results show that the exchange rate plays a crucial role for international trade for GCC countries as the currency is pegged with US dollars. Furthermore, it was also found that the rise in inflation has impacted the businesses in GCC countries. The findings of this research contribute to a deeper understanding of the economic policies needed to enhance trade performance and sustain growth in the GCC economies.