In a basket managed foreign exchange rate arrangement, the volatility of the domestic money should exhibit a particular pattern: (1) it is reduced due to the diversification effect by linking the domestic money to a portfolio of currencies and frequent interventions of policymakers, (2) it...

The objective of this paper is to evaluate the relative attractiveness of seven MENA countries (Algeria, Egypt, Iran, Saudi Arabia, Morocco, Tunisia and Turkey) as a location for foreign portfolio investment (FPI) from the G7 investors viewpoint. We suggest a methodology based on the combination...