Abstract:
ABSTRACT :
The study dealt with the effect of Policies in the Sudanese pound exchange rate
on consumer prices and inflation rates, an applied study in Sudan during the
period 1980-2014. The study also aimed to analyze the silence and trend of the
short and long-term relationship between the actual real exchange rate, consumer
prices and inflation rates. The explanations for clarifying the effect of fluctuations
in the actual real exchange rate, consumer prices and inflation rates. The problem
of the study was represented in the continuous fluctuations of exchange rates
affecting consumer prices and inflation rates. The study adopted a descriptive
approach in view of the nature of the problem and the information available on it
and discussed within the framework of the study. For the purpose of analyzing the
time series, this requires testing the unit roots, the joint integration test, and the
fluctuation test using the models (TARCH, EGARCH) The study reached the
most important results of the existence of an integrative relationship between the
study variables during the period (1980-2014). In addition, there was an impact
of exchange rate fluctuations on changes in consumer prices and inflation rates,
as well as the continuous decline in the Sudanese pound exchange rate by the
International Monetary Fund, which led to the weakening of the Sudanese pound
against foreign currencies, weakening the purchasing power, which increased the
prices of imported goods, and this in turn was arranged. It has to increase the
pressure on consumer prices. The study recommended that the central bank
