IntroductionThe foreign exchange market is a global decentralized over-the-counter financial market for the trading of currencies. It determines the relative values ​​of different currencies. A local currency is a currency not backed by a national government and intended to be exchanged only within a small area. Money is used as a means of exchanging goods and services. Its role is vital in the economy. Because the devaluation of a local currency makes its products relatively cheaper; this increases export capacity. With the decrease in demand for goods and services from the local country, its local currency devalues ​​and the opposite is the case if the volume of its exports increases. The exchange rate is one of the important factors that affect the balance of payments of a country. A balance of payments (BOP) is an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services and financial capital, as well as financial transfers. A nation's sources of funds, such as exports or receipts from loans and investments, are recorded as positive or surplus. Uses of funds, for example to import or invest in foreign countries, are recorded as a negative or deficit item. Currencies are the methods and instruments used to adjust the payment of debts between two nations that employ different monetary systems. A country's balance of payments has a significant effect on the exchange rate of its currency. Bills of exchange, drafts, checks and telegraphic orders are the main means of payment in international transactions. Buy or sell foreign currencies in order to profit from sudden changes in the paper exchange rate......, W. and Unni, S. (2005), “Exchange rate exhibition among European companies: evidence from France , Germany and the United Kingdom”, Accounting and Finance, Vol. 45, pp. 479-97 Salifu, Z., Osei, KA and Adjasi, CKD (2007), “Foreign Exchange Risk Exhibition of Listed Companies in Ghana”, The Journal of Risk Finance, Vol. 8, no. 4, p. 380 393 Siddiqui AM (2009). “Modeling Volatility of Pak Rupee Against Five Major Currencies from the Perspective of Different Exchange Rate Regimes”, European Journal of Economic, Financial and Administrative Sciences, Vol. 17, pp. 1-16 Williamson, R. (2001). “Exchange Rate Exposure and Competition: Evidence from the Automotive Industry,” Journal of Financial Economics, Vol. 59, p. 441-75 Wilson, A. and Heitger, D. (2002), “Accounting for Hedges: Foreign Currency Exposure”, Special Financial Instruments, Vol. 10, no. 1, pp... 33-37