According to effects of foreign exchange shocks on Iranian economy and vast capacity of sukuk, this study surveys sukuk as a foreign exchange policy instrument. Using a descriptive –analytical method and utilizing the library resources, the study after introduces nature and effects of foreign exchange shocks and the structure of Portfolio Balance Model, rewrites equations of the model for sukuk. So it surveys sukuk application as a foreign exchange policy instrument by the Portfolio Balance Model. Its conclusion shows theoretically sukuk can control foreign exchange shocks.