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Seif: Currency Volatility Not Linked to Past Banking Woes

Seif: Currency Volatility Not Linked to Past Banking Woes  Seif: Currency Volatility Not Linked to Past Banking Woes

The governor of the Central Bank of Iran has decried analyses linking the recent volatility in the foreign exchange market to past woes besetting the banking system. 
Valiollah Seif wrote on his channel in the popular messaging app Telegram that he welcomed different views concerning the forex market, but wrongful analyses of currency depreciation should be avoided.   
“Factors influencing the foreign exchange rate have both economic and non-economic reasons,” he wrote. 
“In recent days, some views have circulated about forex volatility and in one analysis, the reasons have been traced to banks’ sour assets, high interest rates, tight monetary policy and doubling of liquidity in proportion to the monetary base and also the negative balance of payments.” 
The CBI chief attributed the fluctuations to external factors such as uncertainty about the US staying in the nuclear deal that Iran signed with world powers in 2015.
 

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