Saeed Leylaz
Saeed Leylaz

Take Higher Forex Rates in Stride

Take Higher Forex Rates in Stride

A 10-12% annual increase in foreign exchange rates based on the inflation rate is not an anomaly, says a economist.
“Those who insist that currency rates must stay fixed should (also) keep inflation on a leash and prevent it from rising so that exports are not harmed, imports do not increase and the balance in consumption pattern is not upset,” Saeed Leylaz told IRNA.
As an example, the academic noted that a trip to Antalya (in neighboring Turkey) is now less costly than a trip to the holy city of Mashhad and it is cheaper to import banana from Ecuador, which is 16,000km away than to import apples from Damavand (a district in north Tehran).
All this is the result of the relative stability in forex rates, the pundit says.
“On this basis, an annual surge of about 10-12% in forex rates cannot and should not be condemned unless inflation has been tamed,” Leylaz said. “An increase in currency rates in the vicinity seen in the market over the past several days is in no way a cause for concern.”
According to the economic expert, there also should be a consistency between the US dollar rate and the inflation rate. “We have indeed witnessed a relative stability regarding the matter (rates) over the past three and a half years (since the current government took office in mid-2013).”

Short URL : https://goo.gl/h9YVjO
  1. https://goo.gl/wjBX4u
  • https://goo.gl/G48UpS
  • https://goo.gl/ho7qMS
  • https://goo.gl/GQdVR2
  • https://goo.gl/bkVwfI

You can also read ...

Iraq to Respect Dollar Ban But Not All US Sanctions on Iran
Iraqi Prime Minister Haider al-Abadi stepped back from his...
US Sanctions on Iran Affect Trade With UAE
The latest US sanctions against Iran are forcing many Iranian...
Indian Tea Exporters Seeking Special Exchange Rate From Iran
The Indian tea industry has sought a special exchange rate...
Gold Coin Gains
The benchmark Bahar Azadi gold coin gained on Tuesday, as both...
New Government Policies Reduce Forex Demand
The implementation of new foreign exchange policies by the...
Failure to Safeguard Iran Deal Will Show EU Still a Paper Tiger
Just a few weeks ago, it seemed that the Iran nuclear deal...
Nvidia Rolls Out New Chip Technology for Filmmakers
Nvidia Corp on Monday released a new generation of chips aimed...
Google Tracks Your Movements, Like It or Not
Google wants to know where you go so badly that it records...

Add new comment

Read our comment policy before posting your viewpoints