The Governor of the Central Bank of Iran Ali Salehabadi said access to foreign currency is improving gradually.
“CBI’s access to forex resources has improved meaningfully in the present fiscal year [started in March],” he was quoted as by the CBI news website.
“Foreign currency to the tune of $36 billion was supplied for importing goods since the beginning of the year. This was way higher than the total available last year,” he said.
One important source of currency income is export, which Salehabadi said has increased substantially in recent months.
Up until today [Dec.6], exporters sold $20 billion via the Nima market, he said, noting that the amount was 70% higher on the corresponding period last year.
Nima is a special platform through which non-oil exporters offer their overseas income and companies buy for import purposes. The rate in this market is usually lower than the open market.
Higher currency income from export of goods and tech services is related to the growth in foreign trade. According to the Customs Administration, Iran’s foreign non-oil trade reached 98.7 million tons worth $55 billion in the first seven months (March 21-Oct. 22) of current fiscal year, registering an increase of 16.5% in weight and 43% in value compared to same time last year.
Exports generated $27.1 billion up 47% .
Salehabadi said $456 million was sold via Nima on Sunday alone, reiterating that “facilitating forex income repatriation is crucial.”
Currencies Volatile
Despite the impressive increase in forex income, Iran’s currency market is facing fresh bouts of volatility in recent days.
Rather than being driven by supply constraints, the volatility seemingly is related to political developments, namely the talks with the five countries to restore Iran’s nuclear program, known officially as the Joint Comprehension Plan of Action (JCPOA).
The dollar reached a 14-month high of 301,600 rials on Saturday, gaining 2.85% against the rial in one day. After a short pause on Sunday, the greenback rallied again on Monday, notching another 1.44% gain or 4,400 rials to buy 305,000 rials.
In the regulated market, where forex is traded wholesale, the greenback was quoted at 275,790 rials, up more than 0.2% on the earlier session.
The regulated forex market is a CBI-affiliated spot market operated by a network of banks and certified moneychangers dealing in wholesale trade.
Gold prices too surged in tandem with the spike in currency rates. The popular Emami gold coin gained 1.4% to change hands at 132.3 million rials.
Half Bahar Azadi coin was up 1.3% to reach 69 million rials and one gram of 18-karat gold sold for 13.2 million rials, 1.17% higher than the session before.
The precious metal edged lower on Monday in world markets, pressured by a stronger dollar and rising expectations that the US Federal Reserve could reduce its asset purchases at a faster pace amid signs of a tighter labor market, Reuters said.
Spot gold fell 0.2% to $1,780.63 per ounce while US gold futures dropped 0.1% to $1,782.70.
