The Impact of Real Exchange Rate Fluctuations on Investors' Portfolio in Direction of Iranian Capital Protection

Document Type : Research/Original/Regular Article

Authors

1 Associate Professor, Department of Economics, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran

2 PhD of Economics, Faculty of Management and Economics, Islamic Azad University, Sciences and Research Branch, Tehran, Iran

3 PhD Candidate of Monetary Economics, Faculty of Management and Economics, Islamic Azad University, Sciences and Research Branch, Tehran, Iran

Abstract

One of the main general policies of national production is supporting Iranian labor and capital, protecting domestic capital and the investment of Iranians living in foreign countries to prevent capital exit from the country and increase social welfare. Accordingly, the year 2012 was labelled the same. In the last couple of years, the exchange rate had a lot of fluctuations which influenced investors' portfolio. With respect to the 20-year prospective document, it is imperative to study the effect of the exchange rate fluctuation on the investors' portfolio, and suggest the necessary plans to the investors and government in order to prevent further damage to the Iranian investors and guide investment toward production and help the reduction of inflation rate. Therefore, the aim of the current study is to investigate the impact of exchange rate fluctuation on the Iranian investors' portfolio considering the general policies of national production, and labor and capital protection. The research method was descriptive and library based, using the data from 1991 to 2019. To analyze the data, ARDL test was employed. The findings showed that the exchange rate fluctuation had a significant impact on investors' portfolio.

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References

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