Forex reserves are in a relatively better shape and supply to the secondary currency market, known as Nima, has improved considerably, the governor of the Central Bank of Iran said.
“We expect forex supply to continue in the next few months,” Ali Salehabadi was quoted Wednesday by news outlets as saying.
In the month to Nov. 21, oil exports increased noticeably compared to the previous month and this helped the government to increase currency transfers to Nima -- pushing up the supply side above demand, Salehabadi said.
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.
In this system, importers declare their currency needs, exporters register their proceeds and banks and authorized moneychangers are brokers.
“We have also increased the amount forex exchange bureaus can receive from the CBI by about 50%, from €100,000 to €150,000 per day.”
The CBI will facilitate the purchase of foreign currency bonds by investors via the state-owned Bank Melli, he added.
“The bonds will be issued and guaranteed by the CBI. The sovereign gold bonds will be offered as part of the plan to stabilize the [chaotic] forex market. It will also help protect investors from risks associated with the currency market.”
Contracts will have three-month maturity and will be settled in cash either in US dollars or rials subject to the owners' choice and calculated at rates announced daily by the regulated market, known as the Iran Currency Exchange.
Those interested can buy between $1,000 and $4,000 bonds with the national currency.
Offering forex bonds is a new central bank move to try and control the high and rising currency rates that have reached historic levels in recent months.
Moreover, he said, CBI is prepared to offer as many Bahar Azadi gold coin bonds as the market may demand.
“The bonds are being offered at the stock market at balanced prices and should help stabilize the tumultuous market.”
The CBI launched the initial public offer for gold coin bonds at the Iran Mercantile Exchange (IME) in early November. The bonds are not taxable. Each individual can buy up to 100 coins in bonds.
Maturity of the SGBs is six months. Bonds will be liquidated in cash at maturity date based on the average price of gold coin bonds and bank certificate of gold coin deposits on the last trading session.
The CBI governor said in early November that the bank has enough resources and tools to stabilize currency and gold prices that have rocketed to unprecedented high.
