The Central Bank of Iran will issue foreign currency bonds starting Saturday as a part of its plan to stabilize the chaotic forex market.
Forex will be offered at the state-owned Bank Melli, the CBI said Tuesday in a press release seen on its website.
Those interested can buy between $1,000 and $4,000 bonds with the national currency.
Contracts will have a maturity date of three-months and will be settled in cash either in US dollars or rials subject to the owners' choice and will be calculated as per rates in the regulated market, known as the Iran Currency Exchange.
Foreign currency bonds are non-transferable and taxable.
Offering forex bonds is a new central bank move to try and control the high and rising currency rates in the open market.
CBI Governor Ali Salehabadi on Sunday had said that the bank would soon unveil a new measures to address public concern over the unprecedented increase in currency rates over the past several weeks.
He stressed that the CBI will reinforce its presence in the currency market to restore stability in prices.
"Currently, the CBI injects up to $1 billion into Nima system every day, which is higher than demand. CBI's own resources and forex revenue from exports are used to supply the market," he added.
Nima is an online platform affiliated to the CBI through which exporters sell their overseas currency income in the form of hawala. Through this platform companies buy currency for importing goods, machinery, equipment and raw materials.
In this system, importers declare their currency needs, exporters register their proceeds and banks and authorized moneychangers are brokers.
The senior banker last week said that the central bank has enough resources and tools to stabilize both the currency and gold prices that have been of the ascending order in ways unseen in history.
"Given that the CBI has enough foreign currency, it is firm on easing the people's access without waiting in long queues.” Launching a central platform for online forex trade is one key measure, he said.
The CBI this week gave permission to exchange shops to buy/sell currency online through the website of the Iran Currency Exchange (ICE).
Buyers can place orders using the ICE platform by showing their IDs and select any exchange shop to get their order.
Recently the regulator required licensed currency exchange bureaus to report rates shown on their electronic boards also on a central e-platform accessible to the public.
Close to 300 exchange bureaus have started publishing data live on the regulated market website. All 545 licensed exchange shops are expected to be linked gradually to the system.
"We instructed 40 branches of Bank Melli, Bank Mellat, Tejarat Bank and Bank Saderat to sell foreign currency at negotiated rates," the CBI boss said.
In another move, the CBI launched an initial public offer for Bahar Azadi Gold Coin Bonds at the Iran Mercantile Exchange (IME).
Economists and market observers link the latest CBI moves to tame the market in the hope of dissuading investors from the forex business that has lacked any semblance of stability for years.
The CBI also hopes to attract holders of foreign currency, usually kept in cash at home.
Forex Rates Rise
The greenback closed in the unofficial market Tuesday at 358,800 rials, up 0.58% on previous day's close. It was quoted at 301,970 rials in the regulated market, down 2.66% compared to Monday's close.
The euro bought 373,470 rials in the unofficial market, up 1.77% during the day while the UAE dirham was almost unchanged on the session before at 97,600 rials.
The Emami gold coin was quoted at 164.48 million rials, up 1.52% on Monday. Half Bahar Azadi coin gained 0.78% to buy 89.5 million rials while the Quarter Bahar Azadi coin was up 1.51% at 59.5 million rials.
