ASSESSING THE IMPACT OF FEDERAL GOVERNMENT FOREIGN EXCHANGE POLICIES ON CONSTRUCTION FIRMS
Abstract
This study examines the impact of federal government foreign exchange policies on construction firms, focusing on the effects of exchange rate volatility, foreign exchange restrictions, and currency devaluation. The research employs a mixed-methods approach, combining quantitative analysis of financial data from construction companies with qualitative insights from industry experts. Findings reveal that fluctuating exchange rates significantly affect the cost of imported construction materials, leading to budget overruns and project delays. Additionally, foreign exchange restrictions hamper firms' ability to procure essential equipment, while currency devaluation increases the cost of debt servicing for companies with foreign loans. The study concludes that predictable and stable foreign exchange policies are crucial for the sustainable growth and profitability of construction firms, and it offers recommendations for policy adjustments to mitigate adverse impacts. These findings provide valuable insights for policymakers, industry stakeholders, and construction firms navigating the complexities of foreign exchange dynamics.
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