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Research Article | Volume 4 Issue 2 (Mar-Apr, 2022)
Economic Factors Affecting the Volatility of Exchange Rate in Tanzania
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Abstract

The study intended to find out business issues affecting the volatility of exchange rate (iii) to investigate political influences affecting the volatility of exchange rate. A descriptive research design was adopted since the study intended to gather both qualitative and quantitative data on economic factors affecting the volatility of exchange rate in Tanzania. The principal target populations were 52 employees of CRDB and NMB head-quarters offices in Dar es Salaam, Tanzania. This study employed both primary data and secondary data methods. The IBM SPSS Statistics software aided descriptive statistics analysis such as frequency tables to present demographic statistics of respondents while means and standard deviation was used to present data on the objectives of the study. Findings revealed that there is a significant positive relationship between economic factors and exchange rate volatility in Tanzania. The study concludes that the weaknesses and strengths of exchange rate depend much on the behavior of both economic factors. It is from this point of view that makes this study to conclude that there is a strong and significant relationship between economic factors and exchange rate volatility in Tanzania.

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