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

Author/Editor:

Oya Celasun

Publication Date:

March 4, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 2003/026

Subject:

Currency markets Exchange rate arrangements Exchange rate flexibility Exchange rates Financial markets Foreign exchange Real exchange rates

English

Publication Date:

March 4, 2003

ISBN/ISSN:

9781451844405/1018-5941

Stock No:

WPIEA0262003

Pages:

18

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