56204
Official Says Dollar’s Gain Is Not Rial’s Loss
Economy, Business And Markets

Official Says Dollar’s Gain Is Not Rial’s Loss

The recent hike in the US dollar’s exchange rate in the Iranian market after the greenback gained against all other major currencies does not equal a weaker rial, claims a deputy economy minister.
“The increase in the dollar’s exchange rate [against rial] in recent weeks has happened because its value has gone up against all other currencies and the global trend of increasing demand for the dollar is the reason for the rial’s decline against the dollar,” Hossein Qazavi was quoted as saying by IBENA.
In an address to a gathering of Bank Tejarat officials, Qazavi said this does not mean that the value of the national currency has fallen.
“The mandate of the Central Bank of Iran under the circumstances is to maintain stability and prevent fluctuations in the currency market, and not necessarily to interfere for realizing a specific rate,” he said.
In mid-November, the US dollar soared to its highest since April 2003 against a slew of currencies in global markets, reaching its strongest in a year against the euro. It advanced past $1.07 per euro for the first time since the start of December 2015.
The American currency broke the 40,000-rial threshold in Tehran’s market on Wednesday, recording an all-time high for the currency. While the American currency had begun to rally in November, the 40,000-rial milestone took the economic officials by surprise.
While the government and the central bank have come under fire for recent currency market swings, officials have sought to allay fears by saying that these fluctuations are temporary and will abate as demand for the currency subsides.
Stressing the necessity of maintaining financial discipline in the government, Qazavi called for better interaction between the government and banks.
If the administration implements measures for a paid-up capital  increase of government-owned banks, he said, “We will witness an improvement in the capital adequacy ratio and lending capabilities of these banks, which will naturally influence other banks as well.”
Referring to the fact that the first draft for a joint bill between the Ministry of Economic Affairs and Finance and the Central Bank of Iran regarding Iranian banks has been readied, he spoke of what the bill would entail.
“If passed, the bill will create significant changes in the way interests for the government’s overdue debts to the banks are calculated. They would be calculated in a way that would be more supportive of banks,” Qazavi concluded.   

 

Short URL : https://goo.gl/KXEP7W
  1. https://goo.gl/PDmhsb
  • https://goo.gl/pJQeq2
  • https://goo.gl/PMVLT4
  • https://goo.gl/ReWjim
  • https://goo.gl/A4K9ij

You can also read ...

Russia Signs EAEU-Iran FTZ Agreement
Russian Prime Minister Dmitry Medvedev signed an interim...
Google spent more than half a billion dollars last year to establish smart home company Nest in sectors like security cameras, alarm systems and video doorbells.
Google parent company Alphabet reported first quarter earnings...
Ransomware Attack Hit Ukraine Energy Ministry Website
The website of Ukraine’s energy and coal ministry website has...
Hand-Woven Carpet Exports at $424m Last Year
Some 5,400 tons of hand-woven Persian carpets worth $424...
Labor Ministry Reports Provincial Share of GDP
The Ministry of Cooperatives, Labor and Social Welfare’s...
Modern Irrigation Systems  Installed Over 180,400 ha Last Year
More than 180,400 hectares of farmland were equipped with...
S. African Delegation to Visit Semnan
A South African business delegation of economic players in the...
Non-Oil Trade With Italy  Up 9.6%
Iran traded $1.85 billion worth of non-oil goods with Italy in...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus