Governor of the Central Bank of Iran Valiollah Seif said the drastic decision by the government to unify the US dollar’s rate does not mean that a fixed exchange rate system would be at work, as the rate would “fluctuate with market mechanisms”.
Seif said during a TV interview late Tuesday that the exchange rate was only fixed on April 10, but from that time only it would swing in line with inflation.
The government announced late Monday that it would enforce a single exchange rate to the dollar, banning all unregulated trading after the rial hit an all-time low.
First Vice President Es’haq Jahangiri said at the time that the official rate will be 42,000 rials to the dollar as of Tuesday. He said that trading at any other price was forbidden and would be considered “smuggling”.
The decision came after a two-day hike in prices of foreign currencies that saw the rial trading at 62,000 to the dollar—an 18% drop since Saturday.
The measure in effect ended the dual exchange rate for the US dollar and saw the official rate rise above 40,000 rials after 28 months.
April 11, 2018 19:37
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Seif: Unified USD Rate Not Fixed
Seif said late Tuesday that the exchange rate was fixed on April 10, but would swing in line with inflation
President Hassan Rouhani also announced on Wednesday that the new measures were aimed at allaying the concerns of people, producers and businesspeople, and make the economy more transparent
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