Economic study on the effect of currency exchange rate on the prices of some veterinary drugs in Egypt

This research aimed to study the effect of currency exchange rate on the prices of some veterinary drugs in Egypt through study of model exchange rate volatility and identification of the major factors that impact the exchange rate of Egypt, especially to analyze the relationship between the changes in currency exchange rate and the degree of consumption of veterinary drugs. Randomized cross-sectional and time series study was carried-out on the data collected during the period extended from the period of 2022 to 2023 on certain drugs that marketed in Egypt of a higher distribution and commonly used for treatment of the large, small animals and poultry against different diseases affecting them. Drugs produced by Atcopharma for pharmaceutical industries at Industrial zone, Quisna, Menofia, Egypt. The drug sales areas include El-Garbia, Kafr El Sheikh, Menofia, Qalyubia, Beheira, Alexandria, Dakahlia, Sharkia, Cairo, Fayoum, Upper Egypt.The results cleared that, the currency increasing exchange rate of Egyptian pound in relation to dollar value reduced the amount of drugs sales and decrease elasticities of different drugs used and causes increasing the prices of this drugs with increasing the value of product produced. This study concluded that, the currency exchange rate is important in Egypt and in countries with similar economic conditions which depend on imports for a considerable extent. Egyptian Government’s strategy to prevent animal and poultry diseases through importation should try to study the currency exchange rate between the dollar value and the Egyptian pound for determination the best types of drugs responsible for treatment and prevention of animal and poultry diseases and so, increasing the productive efficiency of animal and poultry diseases.