Exchange Rate Regime Considerations in an Oil Economy: The Case of the Islamic Republic of Iran, Issues 2003-2026This 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. |
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Exchange Rate Regime Considerations in an Oil Economy: The Case of the ... Oya Celasun Limited preview - 2003 |
Exchange Rate Regime Considerations in an Oil Economy: The Case of the ... Oya Celasun No preview available - 2003 |
Common terms and phrases
basket of currencies BMJII booms CPI Inflation crawling peg criteria for exchange currency is fixed domestic demand exchange rate appreciations exchange rate flexibility exchange rate movements exchange rate path exchange rate peg exchange rate policy exchange rate regime exchange rate risk exchange rate system exchange rate unification exchange rate volatility export rate financial markets fixed exchange rate fixed-but-adjustable flexible exchange rates floating exchange rate foreign exchange market growth percent hedge IMF staff estimates Independently floating Iran's Iranian authorities Iranian crude oil Iranian economy Islamic Republic Lending in billions market exchange rate monetary base monetary policy nominal exchange rate non-oil export official exchange rate oil export revenues oil price shocks parallel market depreciation parallel market exchange parallel market rate pass-through of exchange procyclical rate regime choice real exchange rate Real Government Expenditure Republic of Iran rials stabilize inflation terms-of-trade shocks tradables trading partners transactions TSE market TSE rate U.S. dollar