Economy, Business And Markets

Banks’ Struggle to Attract Forex A/Cs

Banks’ Struggle to Attract Forex A/Cs
Banks’ Struggle to Attract Forex A/Cs

Following the lifting of international banking sanctions against Tehran late last month, lenders have embarked on the difficult task of regaining public confidence in foreign currency accounts, Eghtesadnews reported.

However, according to a former central bank deputy chief, the banks’ bid    to re-launch hard currency accounts demands, as a very first step, unification of foreign exchange rates and that means ending the controversial multiple rate regime.

“Banks should not rush in opening foreign currency accounts as these facilities rely heavily on floating exchange rates,” Seyyed Kamal Seyyed Ali said.

Due to the international sanctions on the key banking sector, lenders over the past three years  failed to pay full returns on foreign currency accounts, which hurt the public’s trust in such accounts used in the past for a variety of commercial and personal reasons.

Given such constraints, the former official said due to the lack of adequate resources and the “tarnished reputation of banks” in the last three years, the people can hardly entrust banks with their foreign currency.

Referring to the banks’ credibility problems during the years of sanctions, he said, “Foreign currency accounts should have a reasonable and modest return to help regain the public’s faith in the banks’ foreign currency accounts, and this depends largely on unifying the exchange rates.”