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Exchange Rate Misalignment in Oil Exporting Countries (OPEC): Focusing on Iran

Author

Listed:
  • Amir H. Mozayani

    (Department of Economics, Tarbiat Modares University, Tehran, Iran.)

  • Sanaz Parvizi

    (Department of Economics, Tarbiat Modares University, Tehran, Iran.)

Abstract
In this paper, we investigate the existence and the nature of real exchange rate misalignment in Organization of the Petroleum Exporting Countries (OPEC). To do this we estimated a cross country basic real exchange rate determination model for 1990-2012 and extracted historic trend of misalignment. The results imply that all OPEC countries have had misalignment -of different kinds though- in their real exchange rate. In order to ensure the robustness of results, we also focused on historic trend of real exchange rate misalignment in Iran, which was derived by model, and observed considerable consistency with realities of policy making and economic performances in Iran. This indicated the compatibility of the estimation results with countries’ actual events.

Suggested Citation

  • Amir H. Mozayani & Sanaz Parvizi, 2016. "Exchange Rate Misalignment in Oil Exporting Countries (OPEC): Focusing on Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(2), pages 261-276, Spring.
    • Handle: RePEc:eut:journl:v:20:y:2016:i:2:p:261
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    References listed on IDEAS

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    2. Fakhri J. Hasanov & Noha Razek, 2023. "Oil and Non-Oil Determinants of Saudi Arabia’s International Competitiveness: Historical Analysis and Policy Simulations," Sustainability, MDPI, vol. 15(11), pages 1-39, June.
    3. Mohammad Hassanzadeh & Shahla Mousavi, 2023. "Real effective exchange rate misalignment and currency crisis in Iran," Future Business Journal, Springer, vol. 9(1), pages 1-8, December.
    4. Rasekhi, Saeed & Rastgar, Majid, 2016. "Policy Time-Inconsistency: A Comparison of Managed Floating Exchange Rate and Controlled Exchange Rate Regimes," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 11(4), pages 351-373, October.
    5. Zarei, Samira, 2020. "Analyzing the Asymmetric Effects of Inflation and Exchange Rate Misalignments on the Petrochemical Stock index: The Case of Iran," MPRA Paper 99101, University Library of Munich, Germany.

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