Currency prices will not fluctuate like the past, as the central bank now has the power to calm the market, said economy minister Ali Tayebnia. He responded to a question on whether the recent depreciation of the rial will cause investors to pile up foreign currencies. Tayebnia said the “volatility” in the foreign exchange market and the recent “changes” in crude oil prices “will not have a meaningful impact on our foreign budget.”Investors were shocked at the recent drop in the value of the rial following the failure of Iran and the P5+1 world powers to resolve a 12-year dispute over Iran’s nuclear energy program and the drop in oil prices – as oil is the government’s main source of revenue. The rial has lost over seven percent of its value against a basket of major currencies since November 24. This has made investors reminisce about rial’s depreciation in 2012 and 2013, when the currency lost around 70 percent of its value.Crude oil prices have plunged to less than $60 a barrel since June’s $115 highs, fuelling speculations of trouble for the Iranian government to balance its books so as to avoid a sharp budget deficit.
