Iran’s Central Bank Unveils New Regulatory Package

The Governor of the Central Bank of Iran unveiled a new package of regulations on foreign currency trade which lifts a ban on the activity of money exchange markets.

Speaking at a television talk show on Sunday night, Abdolnasser Hemati said the new package has been endorsed by President Hassan Rouhani’s administration in order to control the currency market and allow economic activists to interact freely.

According to the new package, the administration will continue to allocate subsidy on basic commodities and medicine in order to fix consumer prices.

The new plan has also removed a ban on the purchase and sale of foreign currency in the free market.

The foreign currency from the export of Iranian goods could be funneled to the local market, the CBI chief said, adding that the free market itself will determine the value of currency.

According to the top banker, who took office recently, reopening of the money exchange markets and lifting the ban on foreign currency trade would also push down the price of gold coin, which has rocketed up in recent weeks.

The new package will take effect on Tuesday.

Iran’s market has experienced a hike in the value of foreign currencies and gold coin prices in recent months. The Iranian money plunged to a record low against the US dollar last week.

There has been growing demand for dollars among ordinary Iranians, who fear more plunge in the value of their assets and growing price of goods, even those not imported from abroad.

Foreign currency values began to rise in Iran after the US withdrew from the Iran nuclear deal in May and announced plans for a fresh wave of sanctions against the Islamic Republic.

(Source: Tasnim, under Creative Commons licence)

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