Exchange Rate Regime Considerations in an Oil Economy: The Case of the Islamic Republic of Iran

Oya Celasun

No 2003/026, IMF Working Papers from International Monetary Fund

Abstract: This paper provides a brief overview of the evolution of exchange rate policy in the Islamic Republic of Iran from 1993 to 2002 and reviews the basic criteria for the choice of the exchange rate regime in the medium term. The analysis highlights the merits of an intermediate regime which would allow the authorities to smooth out excessive short-term exchange rate fluctuations while letting nominal exchange rate movements facilitate real exchange rate adjustments called for by major oil price shocks.

Keywords: WP; exchange rate; rate; price; nominal exchange rate; market; Iran; exchange rate regime; real exchange rate; oil; exchange rate volatility; TSE rate; exchange rate difference; system of the Islamic Republic of Iran; fixed-but-adjustable rate regime; exchange rate movement; choice in the context; exchange rate peg; Exchange rates; Exchange rate arrangements; Exchange rate flexibility; Real exchange rates; Currency markets (search for similar items in EconPapers)
Pages: 18
Date: 2003-03-04
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Citations: View citations in EconPapers (9)

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