Fiscal balance serves as a key indicator of the effectiveness of fiscal policy, making it a fundamental instrument for governments in pursuing developmental goals and ensuring macroeconomic stability. This role becomes even more critical in commodity-exporting countries, where fiscal outcomes are highly sensitive to commodity price fluctuations, amplifying the need for prudent and countercyclical fiscal management. Commodity price volatility is closely linked to the real sector of a country's economy and can directly and indirectly impact fiscal balance through changes in income and expenditures. Given the importance of this issue, this study examines the effect of Commodity Price volatility on the fiscal balance of selected commodity-exporting countries from 2004 to 2021. The relationships between the variables are estimated using the Pooled Mean Group (PMG) technique. The empirical findings reveal a negative and significant relationship between the volatilities of the Commodity Price volatility and the fiscal balance of commodity-exporting countries in the short-run. However, the long-run effect is positive and significant. Moreover, the results show that inflation's effect on fiscal balance is positive in the short run but becomes negative in the long run. Additionally, the unemployment rate has a negative and significant long-run impact on fiscal balance, while its short-run effect is negative but statistically insignificant. Through applying the Panel Vector Error Correction Model (P-VECM), a bidirectional short-run causality was confirmed between Commodity Price Volatility and Fiscal balance, while in the long run, the results indicate a unidirectional causal flow from commodity price volatility to fiscal balance.

Price risk management is one of the most important subjects for economists. In this respect, hedging is one way of adjusting and declining risk. Generally, in all the world, price of agricultural products has maney fluctuations. This is so because of the nature of its demand and supply. Therefore The price fluctuation is one of the most important reasons for establishing futures markets.To establish commodity exchange, first of all, we need to know how it works, what are its characteristics, instruments and institutions, What are the operational, survaliances and legal framework of the commodity exchange. In this paper, we introduce commodity exchange and its characteristics .Then the instruments such as futures and forward contracts and options will be introduced. Legal, institutional & surveliance framework of the commodity exchange will be studied. Then, we introduce the entrance indices of commodities to the exchange .In the last section, we investigate the consequences of establishing commodity exchange in Iran.

In the implementation of the 3rd Five year development plan (FYDP), the constitution of agriculture commodity exchange in Iran was approved by the government. The Ministry of Jihad-e Agriculture, in collaboration with Iran Stock Exchange and Agriculture Bank, has taken the first steps to commence the exchange. In this paper, first, the major problem of Iranian agriculture market are reviewed, and then the important concepts of agriculture commodity exchange which can help developing the agriculture standard, marketing function, transparency of the market information, transferring the price risk and also the future and option contracts are explained.