Volatility monetary zone exchange rate
At the same time, exports of industrial products whose performance is closely related to the exchange rate has been a very effective and significant influence of economic growth in developing countries over the past two decades. As a result, to improve the performance of foreign trade, particularly exports, Indonesia began to implement several policy regulations in its field. Among these are the "January 1982 package" and "Presidential Instruction No. 4 of 1985 "concerning the implementation of technical foreign trade and foreign exchange management, and the" 6 May 1986 policy "which aims to increase exports of non-oil and gas commodities. and increase foreign direct investment. The above situation in turn raises questions about the relationship between two important economic variables relating to currency exchange rates. There are two problems that have been discussed for years in the literature about the effect of the exchange rate on a country's foreign trade performance.
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