An Estimation of CBI's Direct Intervention in Exchange Market a Pressure Approach

The study of exchange market pressure and assessing the central bank’s intervention in different periods can provide valuable information on the performance of central bank and the efficiency of policies applied in exchange market. This paper aims to estimate the degree of CBI’s direct intervention from May 1993 until March 2009 by applying 3SLS method. The main finding of this research suggests that the mean of direct intervention is 0. 16 in the period prior to the fixed exchange rate period and 0. 33 in the period following that period، when the managed floating exchange rate system was in place. Moreover، the CBI has been frequently leaning against the wind