Exchange rate instability has become a key concern within economic policy circles ever since the 1973 breakdown of Bretton Woods agreement; after 47 years, central bankers realize the deleterious effect of exchange rate on the economy in the 12 selected OIC member countries we studied. The aim of this paper is to report the findings on a proposed measure of currency instability, namely the relative volatility, to test it with data relating to 12 OIC member Muslim-majority economies using more than 28 years data. We find that relative volatility is an effective measure for tracking currency instability and exchange rate targeting could be enhanced by including policy bands as well as recommended actions for each movement outside the policy band. Further, relative volatility is significantly correlated with monetary factors suggested by strong theories that drive the exchange rate equilibrium.

自1973年布雷顿森林协议（Bretton Woods）协议破裂以来，汇率不稳定就一直是经济政策界关注的主要问题。47年后，中央银行在我们研究的12个选定的伊斯兰会议组织成员国中意识到了汇率对经济的有害影响。本文的目的是报告有关拟议的货币不稳定性衡量方法（即相对波动性）的发现，以使用超过28年的数据与12个伊斯兰会议组织穆斯林占多数的经济体的数据进行检验。我们发现相对波动率是追踪货币不稳定的有效措施，可以通过纳入政策范围以及针对政策范围之外的每个波动的建议措施来增强汇率目标。更多，