The Central Bank of Iran is making concerted efforts to stabilize the chaotic forex market amid the steep decline in the national currency, the bank governor said.
“We have set up a joint committee with the Oil Ministry and the Ministry of Industries, Mining and Trade. It is focusing on the country’s trade and currency trends and help ensure their compatibility.
At this juncture we are providing the market currencies that are in higher demand and collecting those for which the demand is less and turning it into the former and reinjecting it into the market,” Ali Salehabadi was quoted by IBENA as saying.
Per the committee’s decision, forex demand for the import of essential goods that in the past was processed over 30 days is now done within 48 hours. Currency applications for other imports are passed in 20 days instead of 30, Salehabadi said.
“We decided to increase forex payment orders from €5 million to €30 million, and increased forex loans for essential goods from €20 million to €60 million."
He said that since late March up until mid-December the Nima platform provided $32.1 billion for imports. This is while last year in the same period the amount was $19.6 billion.
Nima is an online platform affiliated to the Central Bank of Iran where exporters sell their overseas currency income and companies buy it for importing goods, machinery, equipment and raw materials.
An estimated $2.09 billion in cash was sold in the regulated market over the same period – up 45% on the $1.45 billion allocated last year.
“Currency rates have been rising in the unofficial market in the past several days. The US Federal Reserve has increased interest rates from 0.5% to 4% and that too has affected prices in our market.
Another reason for the surge in forex rates is the ongoing unrest in the country plus the detrimental impact of contraband. The norm is that every year in the last two- three months of the calendar year forex rates move upwards.”
The US dollar continued to rally in Iran’s free market on Saturday to buy 382,300 rials, gaining 4,500 rials or more than 1.17% in one day.
The euro slipped 0.24% and was quoted at 401,460 rials, the UAE dirham gained 1.75% to be tagged at 108,400 rials, Eqtesad News reported.
