Forex market's shock transient: Rouhani

TEHRAN, Jun. 23 (MNA) – Iranian President Hassan Rouhani in his Tuesday remarks named the unprecedented rial depreciation and the rampant inflation in the domestic foreign currency market as "temporary" and "without any fundamental economic reason".

He said that the balance must return to the exchange market in the near future.

"Psychological warfare against Iran as well as the creation of an unrealistic anxiety among people, are the main causes of the recent fluctuations in the foreign exchange market," said Rouhani.

Licensed exchange shops sold the greenback at an average of 190,970 rials on Tuesday, according to the Association of Bureaux de Change Operators of Iran website. The euro also gained 3.8 percent on the same day to reach 216,930 rials. 

This is while Hamid Qanbari, director of the international affairs department at the Central Bank of Iran, reportedly believes that the hike in currency prices is mostly baseless. 

"Despite the jump in forex rates, demand has remained unchanged," he was quoted as saying by the Association of Bureaux de Change Operators of Iran website.

"The current state of the market seems to be transient," he said.  “The central bank's control mechanism will soon restore stability to the market.” 

Market observers see the government’s recent decision to stop selling cheap currency (1USD = 42,000 rials) to fewer goods as a move that sent a negative signal to the forex market that the CBI is facing a severe shortage of foreign currency. 

HJ/4956377

News Code 160109

Tags

Your Comment

You are replying to: .
  • 2 + 6 =