modeling of intervention in foreign exchange market of iran

the paper examines for the first time the foreign exchange intervention policy in foreign exchange market of iran. and in this framework, the study designs and simulates the foreign exchange intervention model in iran. in the first section, the paper shows that the injection of oil revenues directly to economy and also the absence of potent structure of output are inclusively caused the central bank intervention in the form of foreign exchange buying in the market. this directs to high inflation and low output. so, the survey is designed the foreign exchange intervention model in iran in the form of nonlinear dynamic continuous-time stochastic model. but because there is no exact numerical solution for the model, the paper presents the monte carlo simulated model program base on r package. jel classification: c15, c61, c63, e42, e44, e58, e61, and g18