The rial had weakened to its all-time low in the past week, reaching 42,000 per dollar before gaining some ground.
The rial had weakened to its all-time low in the past week, reaching 42,000 per dollar before gaining some ground.

CBI Governor: USD Rate to Moderate

CBI Governor: USD Rate to Moderate

Governor of the Central Bank of Iran Valiollah Seif tamped down worries about the surging exchange rate for the US dollar on Tuesday, stressing that the surging exchange rate for the US dollar is bound to "moderate".
The rial had weakened to its all-time low in the past week, reaching 42,000 per dollar before gaining some ground. The dollar's rally had accompanied the gold coin surge, creating an unprecedented bubble in recent history.
"Naturally an exchange rate of 42,500 is not the [real] rate for the currency and in the future we will witness more moderate rates," Seif was quoted as saying by IBENA.
Seif also responded to the controversy of the exchange rate set in the 2018-19 budget law–35,000– which is even lower than the official rate, saying that the figure has only "computational" merit and won't be an authentic reference.

Death Knell for Dollar
The CBI governor, in no uncertain terms, declared that the Islamic Republic has indeed abolished the US dollar in its trade dealings with other countries, making good on a promise to sideline the greenback in response to US sanctions that bar Iran from processing transactions going through America's financial system.
"It’s now definite that the dollar has been eliminated from our trade dealings. After all, the currency does not have much use in our banking system," Seif said, adding that the country now receives its foreign payments in currencies other than the US dollar.
After the removal of most sanctions in January 2016 in the wake of the landmark nuclear deal, the US primary sanctions, including restrictions on the use of greenback, remained in place, prompting Iran to seek alternative ways to join the international payment system.
Given the dominant role of the US currency in global trade, the country signed currency swap agreements with neighboring countries and allies, including Russia and more recently Turkey.
The CBI also reached a preliminary deal with China to reduce the role of US dollar in trade transactions. In 2016, yuan joined the US dollar, euro, yen and British pound in the IMF's special drawing rights basket, which determines currencies that countries can receive as part of IMF loans.
China is Iran's biggest trade partner and de facto leader of the Asian Infrastructure Investment Bank, of which Iran is a founding member.

Short URL : https://goo.gl/SUZ6G2
  1. https://goo.gl/5qu2Qi
  • https://goo.gl/rjhbJX
  • https://goo.gl/o7wNqU
  • https://goo.gl/RUY5oX
  • https://goo.gl/SfuVoA

You can also read ...

VDMA Backs Iran Trade
Germany’s plastics and rubber machinery trade association,...
Central Bank of Iran Against Market Intervention
Central Bank of Iran's Governor Abdolnasser Hemmati said the...
Musk Bid for Tesla Still Murky
Tesla Inc’s board named a special committee of three directors...
New Forex Initiative Unable to Tip Scales
The new forex initiative has only managed to fix major policy...
Equity-Based Sukuk Return to Iran Capital Market
The government is set to clear part of its debt to Social...
S. Korea Bans Recalled BMWs Over Fire Fears
The South Korean government has said it will ban about 20,000...
Tehran Shows 4th Biggest Upturn in Economist’s Livability Index
Tehran is one of the top five cities in the world to have...
Tehran Home Rents Up 26.7 Percent in Q1
The average price of renting a residential unit in Tehran...

Add new comment

Read our comment policy before posting your viewpoints