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The present paper reviews the various forms of pegged exchange rate regimes and shows that these types of exchange arrangements are the most used ones in the world, especially in oil-exporting countries. Some of the most considerable advantages of this regime usage are controlling exchange rate fluctuations, restraining inflation, creating an anchor price for commodity trading and facilitating foreign investment. However, due to the increasing interconnectedness of global financial markets and globalization, the costs of pegged exchange rate regimes are ascending. So a lot of countries with such arrangements tend to use more floated regimes. However, transition from pegged to floating regimes in developing countries has its own risks which impose massive economic costs. From this point of view, some more flexible options like "pegging to a basket of currencies", “pegging to a basket that includes the price of oil " and "managed floating regime" have been considered as intermediated options. The report also indicates that despite different currency regimes announced by the Central Bank of I.R. Iran over the last 35 years, there is always some fear of floating exchange rates and tendency to a pegging exchange rate regime, and gradual non-adjustment of nominal exchange rate in proportion with internal and international inflation ratio, coincides with its gradual increase in 10 years periods. Finally, the paper in addition to emphasize at providing managed floating exchange rate regime requirements such as targeting and controlling inflation, declares that independence of central bank and adjusting nominal exchange rate in proportion with internal and international inflation ratio, as the most appropriate options and suggests that " pegging to a basket that includes the price of oil " is certainly better than "managed floating regime" for Iran. But due to non-compliance with its obligations, Iran actually shows significant tendency to pegged exchange rate.

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This paper examines the role of different exchange rate regimes on relationship between  exchange rate volatility and economic growth. To investigate this relationship, information of 53 countries with floating and fixed exchange rate regimes in the period of 1987-2016 are considered. GARCH technique is used to estimate exchange rate volatility and Difference GMM technique for estimating the model. The results indicate that the exchange rate volatility has a negative and significant effect on the economic growth of countries and negative impact of exchange rate volatility on economic growth is weaker in floating exchange rate regime countries compared with fix exchange rate regime countries.

 
 

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Real exchange rate misalignment means that the real exchange rate deviates from its equilibrium level and is the cause of many domestic and global economic problems. This index is considered as an important indicator in foreign competition and in case of adopting an inappropriate exchange rate regime; it may create economic instability and affect economic performance. This issue is important in countries with oil resources due to the special structure of their foreign trade. Therefore, the purpose of this study is to investigate the short-term and long-term causal relationships between the exchange rate regime and the real exchange rate misalignment in the OPEC countries. Therefore, using panel data during the years 2020-2000 and cointegration approaches, long-term and short-term causal relationships between these variables have been investigated. The results show that in the short run, the causal positive and significant relationship has been obtained from the real exchange rate misalignment to the exchange rate regime; In other words, higher the real exchange rate misalignment, the more the monetary authority intervenes in the market to move the exchange rate towards greater stability and minimize fluctuations. In the long run, the causal relationship between the exchange rate regime and the real exchange rate misalignment is negative and significant. This means that as the exchange rate regime moves towards more stability, the real exchange rate misalignment decreases. In other words, the type of exchange rate regime in the long run can lead to the formation of market expectations and, consequently, increase or decrease imbalances.

 

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The main aim of this article is to estimate the volume liquidity shocks and its impact along with other effective variables on the exchange rate system’s survival in the 9 countries with an exchange rate anchor monetary system and the 20 countries with an inflation targeting monetary system during the period of 1999-2020. In order to achieve this objective, volume liquidity shocks were first estimated using the residual method, and then low and high inflationary environments were estimated using the Markov rotation method in Ox-Metrix version 7 software. Finally, the survival of foreign exchange systems has been estimated using the quasi-parametric method with the Weibull distribution in Stata software version 17. The main results of the estimation showed that positive and negative shocks had negative, positive and significant effects on the durability or survival of exchange rate systems in both groups of countries, respectively. Moreover, the variables of gross domestic fixed capital formation, the degree of openness and marginal cost have, respectively had positive, positive and negative effects on the survival of currency systems in the group of countries under investigation. The inflationary environment had a negative and significant impact on the survival and permanence of the exchange rate systems in both groups of countries, but the effect of nominal effective exchange rate volatility on the survival of the exchange rate anchor system was not significant due to the adopted exchange rate arrangements of a stabilized currency system with a 2% and limited fluctuation range, which reduces the possibility of aggravating instability.