‘Forex market under CBI’s control, passing temporary turbulence’

Foreign currency exchange market is under the control of Central Bank of Iran (CBI) and the temporary turbulence will pass, Tasnim news agency reported on Thursday quoting CBI Governor Abdolnaser Hemmati as saying.

TEHRAN TIMES- Referring to the impact of Japanese Prime Minister Shinzo Abe’s trip to Iran on Wednesday on forex market inside the country, the official said: “It is unfortunate that there are always some people who apply political means for creating instability in the forex market. I should here emphasize that none of the basic economic factors that set the foreign currency exchange rate has been changed in the market and the CBI is dominating the forex market.”
“We will pass all problems created by the U.S. sanctions through the strategies and approaches we have initiated for the non-oil exports and re-injection of the foreign currency earnings from such exports to the domestic economic cycle”, Hemmati further noted.
Last week, Iran’s Trade Promotion Organization (TPO) Head Mohammadreza Modoudi announced that since the beginning of the current Iranian calendar year (March 21), nearly $4 billion has been re-injected into the country’s Forex Management Integrated System (locally known as NIMA).
The official praised the CBI’s efforts for managing the foreign currency market and noted that since CBI’s foreign currency reform, over $18 billion of foreign currency has been re-injected into NIMA by exporters.
In late May, CBI unveiled a directive package which provided the country’s exporters with guidelines about how they should re-inject their foreign currency incomes into the country’s economy.
In the same month, Hemmati said the country’s exporters have re-injected 60 percent of their total exports revenues in the form of foreign currency into the country’s financial system.
The Iranian government provides the country’s exporters with foreign currency at a low exchange rate in order to encourage foreign trade, however the exporters are expected to return part of their revenues in form of foreign currency.

Publish Date: Jun 15, 2019