We further examine how the change in exchange rate affected trade flows in the 2000s. Given our main focus on trade volume growth—excluding the volatile price factor—the empirical analysis investigates how real exchange rate movements lead to changes in trade volumes. While much literature tests the impact of exchange rate volatility on trade flows, there are few that examine the impact of the exchange level itself on trade, in particular trade volume. In investigating the relationship between changes in trade and exchange rates, we employ a panel gravity model with various fixed effects included to control for omitted variable bias and its associated endogeneity.