Effect of exchange rate and interest rate uncertainty on economic Growth and development Selected Islamic countries based on Simultaneous equations system approach

The effects of exchange rate uncertainty and interest rate uncertainty on economic growth and development are among the economic issues that still face a research gap. The purpose of this research is to investigate the effects of uncertainty of exchange rate and interest rate on economic growth and development in selected Islamic countries. The current research is analytical and descriptive in terms of content and practical in terms of purpose. Content information from the present research has been extracted using the document-library method and the statistical data related to the research has been extracted using global statistical websites. The models used in this study have been estimated using the annual data of 40 selected Islamic countries for the period of 2010-2021 using the system of simultaneous equations. In order to calculate the index of uncertainty of exchange rate and interest rate, the method of recursive network has been used. The results of the research showed that the fluctuations of the exchange rate and interest rate had a negative effect on the economic growth of the studied countries. It was also observed that the fluctuations of exchange rate and interest rate had a negative effect on the economic development of the studied countries.