Economy, Business And Markets

1st USD Rate Hike After Unification

1st USD Rate Hike After Unification 1st USD Rate Hike After Unification

For the first time after the government decided to unify the US dollar's exchange rate more than a month ago, the Central Bank of Iran has allowed for a minor increase in its rate. 
The CBI set the rate at 42,050 rials on its website on Monday, allowing for a 50-rial increase. Although infinitesimal, the change indicates the government's willingness to allow rate alteration as opposed to previous efforts for imposing a fixed rate. 
CBI Governor Valiollah Seif on Sunday hinted at an exchange rate hike, saying that it would have 5-6% flexibility until the end of the fiscal year on March 20, 2019.  
Addressing a gathering of bank chief executives, Seif noted that CBI will determine the forex rate on the basis of the inflation rate.
The forex unification came on the heels of a sharp slide in the value of rial.


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