Economy, Business And Markets

Opportune Time for Single Currency Rate

Opportune Time for Single Currency RateOpportune Time for Single Currency Rate

Now it is the most opportune time for the unification of foreign exchange rates – a measure crucial for improving the struggling economy and moving forward, a former official of the central bank says.

“The first half of the current fiscal year (started March 20) is apparently favorable for unifying currency rates because most businesses and importers are already conducting their trade at the market rate,” Heidar Mostakhdemin Hosseini was quoted as saying by

Highlighting the need and benefits of a unified forex regime, he said ‘’Allocating subsidized hard currency to a limited line of manufactures and  products in essence gives rise to rent-seeking and corruption.

So, in order to expand and improve economic opportunities in the aftermath of the implementation of the nuclear deal, a floating exchange rate system is without doubt crucial to avoid economic problems (in the future).”

Since 2014 the government and the Central Bank of Iran have cleared the way for the unification of forex rates by limiting the allocation of foreign currency at official rates to less than 10 categories of imported goods,” he said.

On the future of forex rates, he said, “We are just at the beginning of the new fiscal year and it is not possible to make precise forecasts.

However, it can be said with a fair degree of certainty that currency rates will not decline any further.”

In Sunday’s trade, the US dollar was sold for 34,850 rials in Tehran, a 0.09% or 30 rials increase compared to the previous day.  The euro was up by 0.4% and bought 39,760 rials.