| المستخلص: |
The study aims to assess the impact of changes in the exchange rate on economic growth in Egypt, during the period - 1990/1991 - 2012/2013. To this goal, a review of literature covering the results of the applied studies was conducted. On the one hand the finding of the review showed that the measure of exchange rate is unclear with respect to the concepts in application. This is due to the large analytical frameworks that suit different situations. With this end in view the change in the exchange rate, along with a number if economic variables were used in a regression model to assess the impact. The application of this model showed that: Final consumption increase of one million pounds lead to an increase in gross domestic product of about 0.71 million pounds on average, while increase by one million pounds lead to an increase in Gross Domestic Product of about 3.2 million pounds on average, The increased in imports by one million pounds lead to decrease in Gross Domestic Product of about 0.72 million pounds on average, and that the value of Gross Domestic Product in time (t-1) affects up to 94 percent of the value of the gross domestic product in time (l) . Moreover a decrease in the real exchange rate against the dollar by one percent would lead to an increase in Gross Domestic Product by about .17 million pounds. According to the above mentioned finding the policy makers in the Egyptian economy have to pay the greatest attention to maximizing the country’s receipts of foreign currencies, especially the hard ones, through promoting industrial exports in addition to all other sources of such receipts like remittances of the Egyptians working aboard, and tourism and foreign investments, This will directly and indirectly help increasing and sustaining the GDP growth rate and, hence, the standard of living in Egypt.
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