“…They argue that if changes in the exchange rate are unpredictable, it indicates uncertainty about companies' profi ts and reduces the benefi ts of international trades. Hence, the main target of attention was the channel through which the uncertainty generated by short-run and long-run volatility is transmitted to the decision to trade, its expected profi tability, and eventually the allocation of resources between tradable and non-tradable goods and services [4]. Furthermore, the relationship between exchange rate volatility and the volume of international trade can be affected by many other factors, such as the degree of competition, the role of invoicing currency, the absence of imported inputs, the aversion to risk, the commodity and geographical structure of trade or the availability of exchange rate hedging instruments.…”