Abstract:
The impact of exchange rates volatility on international trade in Liberia, Liberia is located in West Africa with approximately 5,649,942 population which is equivalent to 0.07% of the total world population according to Worldometer. A little nation with exchange rate volatility has caused some economic challenges to businesses and the nation at large.
Exchange rate volatility on international trade is the frequent and unpredictable fluctuations in the value of one currency relative to another. In the context of international trade, exchange rate volatility can have effects on uncertainty in policy, impact on trade volumes, risk to businesses, competitiveness. The exchange rate volatility introduces risk and uncertainty, can disrupt international trade dynamics and affect economic stability.
Forex traders and businesses have failed to align with the Central Bank of Liberia (CBL) exchange rate policy, lack of adequate exchange rate policy implementation, the country’s highly dependency on imports than exports, making businesses, forex traders to decide the exchange rate for an entire nation. This has affected global trade and profitability causing exchange rate to volatile and economic instability to the citizens in Liberia.
The impact of this research has provided the opportunities and reasons for forex traders and businesses to align with the Central Bank of Liberia (CBL) exchange rate policy, encouraging more Foreign Direct Investment (FDI), also focusing on domestic production in various sectors of the economy, minimizing exchange rate volatility, policy implementation across various sectors of the economy.

Keywords:
Exchange Rate Volatility, Fluctuation, International Trade, Forex, Import, Export