Business And Markets

Assorted Factors Undermine Iran Currency Market

The CBI boss pointed to speculation about the estimates and projections in the March 2020-21 budget bill as another driver of the current trend in the forex market
Assorted Factors Undermine Iran Currency Market  Assorted Factors Undermine Iran Currency Market

Responding to the new chaos in the currency market, the Governor of Central Bank of Iran Abdolnasser Hemmati blamed it on developments unfolding in the political, social and economic arena. 
Speaking to reporters on the sideline of a startup event on Monday, Hemmati said the gasoline rationing scheme in mid- November set off the first spark in the currency price rise that was followed by a wave of social unrest and violence across the country. 
“As we all know, this was due to the price shock emanating from the hike in pump prices after which a [negative] psychological climate dominated the market,” IRIB news quoted him as saying. 
On midnight Nov 14, the National Iranian Oil Products Distribution Company (NIOPDC) announced that gasoline had been rationed and prices raised between 50% to 200%. The new rates came into effect immediately. 


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