Economy, Business And Markets

No Plan in Sight to Unify Forex Rates

No Plan in Sight to Unify Forex Rates No Plan in Sight to Unify Forex Rates

Central Bank Governor Valiollah Seif announced on Monday night that it is not feasible to implement the plan to unify foreign exchange rates.

Officials have been discussing in recent months that the unification of official and unofficial rates in the currency market is crucial to happen, with some predicting that the plan could be implemented by yearend (March 2016).

Economic pundits suggest that since domestic economy is relatively stable now, time is ripe to adopt a unified foreign exchange rate system.

Seif made the remark in a meeting with members of the parliament’s economic commission at the central bank headquarters. “Given the domestic economic situation, major changes in the foreign exchange market are unlikely to occur,” the governor said, as reported by IRNA.

He delivered a report on the banking performance during the past year. The central bank managed last year to improve electronic systems and provide better services to customers, the report said, citing the official.

Among other issues discussed in the meeting were banking sanctions, performance of branches of state-owned and private banks as well as how the central bank monitors the banks’ activities.

Monitoring the non-regulated money market and sorting out the affairs of credit institutions were also thoroughly expounded by the governor, according to the report.

Hamid Reza Khosusi, a commission member, said it was also discussed how the central bank could help boost domestic production and improve the economic structure.

The MPs urged central bank officials to further supervise the foreign exchange market and increase loans to investors and manufacturing units.

The central bank argues that cutting down the deposit rate ceiling, which is now 22 percent, down to levels closer to inflation, which is now hovering at about 16 percent, is a prerequisite for boosting domestic production.