The current upheaval roiling the foreign exchange market requires a different response than in the past, as conditions surrounding the volatility have changed, the government spokesman said.
Mohammad Baqer Nobakht also acknowledged that the current circumstances are not good, therefore the government will use all the "potentials of the system" to stabilize the forex market.
"You recall that whenever the market faced fluctuations, we would reach balance within a short period of time as in last year. But the lack of such a balance this time shows that circumstances have changed and we should change our policies," he was quoted as saying by Fars News Agency during a press briefing on Monday.
"My colleagues should make more efforts in the [forex] market and because a broader policy than that by the central bank was needed, those policies were made and several meetings were held with a mandate from the president and vice president," he added.
According to Nobakht, who doubles as the head of Management and Planning Organization, another meeting was to be held on Monday, the results of which would be announced in the coming days.
The new slide for rial began on Sunday when the currency was traded for 56,800 to the dollar in the open market. It marked a precipitous decline for the Iranian currency since it sunk to a record low against the dollar on March 6 when it had crossed the psychological threshold of 50,000.
When a less-intense rally gripped the market in February, the Central Bank of Iran responded with a slew of measures that worked in part to calm the market. As part of the measures, banks were authorized for two weeks to offer interest rates of up to 20% on fixed one-year deposits, against 15% previously.
CBI also ordered lenders to issue rial-based foreign exchange bonds with yields of up to 4.5% and gold sales at attractive prices.
At the time, some had criticized the measures, arguing that it would waste previous efforts at bringing down interest rates and inflict extra costs on cash-strapped banks.
On Monday, the rial's depreciation continued and the currency was quoted at 60,150 to the dollar in the open market, according to Tehran Gold and Jewelry Union's website.
Local news websites reported that the new rally took place, as hard currency became a rare commodity with few exchange shops willing to sell foreign exchange.
Joint Efforts
Nobakht said the government is strongly opposed to the current conditions.
"The public is demanding that now that the government is opposed to an increase in forex rates, tangible efforts should be exerted and we expect our colleagues at CBI to control the market through new policies," he said.
Also on Monday, CBI Governor Valiollah Seif and Economy Minister Masoud Karbasian were due to meet with the chairman and members of Majlis Economic Commission to discuss a new policy package to stabilize the market.
According to Mohammad Reza Pour-Ebrahimi , the commission's chairman, the plan constitutes four parts and will be enacted through CBI.
"The plan contains the revival of foreign exchange accounts in banks that would guarantee the return of deposits plus a decent interest," he said.
The lawmaker believes that $30 billion have flowed out of the country in the second half of the last fiscal year (ended March 20, 2018) and $20-25 billion worth of foreign exchange are currently being held outside the banking system and which the CBI should lure back into the banking system.
Another part of the plan is to regularize the foreign exchange market governed by a multiple exchange rate system. Regulating exchange shops and enforcing measures that would require exporters to bring their forex income into the country are also on the agenda.
