The Governor of Central Bank of Iran Ali Salehabadi has expressed hope that increase in forex revenue would help control volatility in the currency market.
Salehabadi said the regulator will continue to work towards improving forex income from non-oil export, ISNA reported.
“In the past seven months currency revenue brought into country from exports was corresponded to the whole of last year,” he said.
Apart from increase in repatriation of export income, he referred to ongoing efforts to unfreeze the billions of dollars locked assets.
“Some restrictions are being removed,” he said without elaboration.
Unofficial reports in the local media recently spoke about unfreezing $3.5 billion of Iran’s forex assets. This was first claimed by the managing director of the state-owned news agency, IRNA, on Thursday.
The report, which potentially could spur a selloff in the open currency market, was disregarded by currency dealers as the dollar extended a long winning streak at the weekend, reaching as high as 287,000 rials -- a record in the present fiscal year that started in March.
However, things looked different today (Sunday) when Mostafa Qamari-Vafa, the new head of CBI’s public relations department, spoke of allocating $1 billion for importing basic goods.
According to the IRIB website, this amount is to be secured from the freeing of currency in overseas banks.
As expected, currency dealers were quick to respond and forex rates paused as opposed to the rise in prices for almost two weeks.
The greenback gained 3.5% against the rial in two weeks before giving up 0.5% on Sunday closing at 284,960 rials, 1,440 rials lower on the session before.
Observers say retreat in the currency market is likely in the run-up to the resumption of negotiations later this month between Iran and signatories (minus the US) to the Iran nuclear deal, also known as Joint Comprehensive Plan of Action (JCPOA).
Negotiators are trying to revive the deal, which was abandoned by the former US president Donald Trump in 2018 who imposed the toughest sanctions on Iran’s economy, including on its financial ties to the world.
If the parties strike a deal, experts say the rial, which has lost much of its value over the past year, may rebound as the banking and financial sanctions would be eased as Tehran has demanded and was envisioned in the original deal.
Other major currencies slipped on Sunday. The euro lost 0.56% or 1,163 rials to buy 326,420 rials. The UK pound sterling was down 0.47% at 383,780 rials and UAE dirham was traded at 77,620 rials, losing 0.54%.
Prices at official exchange shops affiliated to the CBI fell on Sunday suggesting the regulator’s intervention to curb the high and rising rates.
The Melli Exchange, affiliated to the state-owned Bank Melli Iran, tagged the dollar at 267,670 rials, 2.2% or 5,860 rials lower on Saturday.
