Impact of Exchange Rate on Current Account Balance: Evidence from SAARC Countries

This study examines the impact of exchange rate on current account balance of SAARC economies. We collected data for the period 1995 to 2021.Where we select four countries as a sample, including Pakistan, Bangladesh, India and Srilanka. Data were collected from World Bank. We used several statistical techniques for analysis purpose, including correlation analysis, descriptive statistics, Unit root analysis, and Robust regression. The results show that exchange rate is negatively associated with current account balance of SAARC countries. This study can be helpful for the policy makers, like they can use our findings in the policy initiatives.