Factors affecting exchange rate under the floating system "Graphical study"

Abstract

Through this study, was exposed to the subject of exchange rate. Where we exposed the aspects and factors, which would affect the exchange rate, under the floating exchange rate system.  might then This was done by analyzing the foreign exchange market environment. And thus exposure to the theoretical framework of the mechanism of exchange rate change in the system mentioned above, and this was supported by a graphical study, showing clearly the type of relationship between  the exchange rate, the rest of the variables economics, each separately under the stabilization of the rest of the variables, has been To conclude that, the exchange rate is positively affected from all transactions, which will increase the demand from non-residents by the national currency, in the foreign exchange market, and adversely affected from all transactions, which will increase the demand from residents by foreign currency, In the event that the intended exchange rate relates to the base currency, and In the case of whether the exchange rate, relates to pricing currency it may be the opposite. So that the exchange rate is positively affected by all transactions that, will increase the demand from the residents party by foreign currency, in the foreign exchange market, negatively affected by all transactions, which will increase  from the demand for foreigners by national currency.