The impact of exchange rate liberalization on investment and inflation in Egypt.

The exchange rate policy is one of the important channels through which the impact of monetary policy is transmitted, especially in light of economies that are characterized by a large degree of integration into the global economy, to affect the relative prices of commodities within a package of programs of economic reforms used by developed and developing countries alike to the real interest rate side in attempts to attract foreign investments. The importance of the state's adoption of an appropriate exchange rate policy within the framework of its foreign policy, where the impact of exchange rate policies on the volume of foreign trade and thus on the status of the state's trade balance, as the exchange rate policy is one of the most important tools of effective monetary policy to protect the national economy from external shocks that it may be exposed to, and since the exit from the fixed exchange rate system and the transition of many countries towards a flexible exchange rate system,  and the desire of many developing countries to encourage their exports. Many developing countries have followed the policy of devaluation of the local currency, which is one of the most important policies that seek to achieve external balance. Most developing countries have taken a number of reforms in order to keep pace with the development of the global economy, as they resorted to the policy of devaluation of their local currency as a tool to correct the imbalance in the trade balance within the framework of the recommendations of the International Monetary Fund and international financial institutions, being one of the adjustment and structural reform programs as it is the most effective policy in addressing external imbalances.