Foreign Exchange Market Shock , Temporary
IRAN NEWS NATIONAL DESK
TEHRAN – President Hassan Rouhani said yesterday that the return of foreign currency incomes will balance the foreign exchange market, and calms the foreign exchange market.
Speaking on Tuesday at the 46th session of the government’s economic coordination board, Rouhani said, “The shock created in the foreign exchange market is temporary and has no fundamental economic reason, and the balance must return to the foreign exchange market.”
“What the government is looking for today is to lead liquidity based on sustainable policies to increase production and the pillars of a productive economy”, Rouhani highlighted.
“The plan for implementation of this policy has started in a coherent manner, and issues such as activating the stock market to rationally supply stocks as well as activating mines, with no economic activities that some individuals have acquired over the years will be taken care of”, the President emphasized.
“Selling bonds to people in a completely economical way, and more importantly, selling government’s property and lands to build housing is another significant measure taken by the government for sustainable and fundamental change in the economy so that it can turn the country’s liquidity into a productive and sustainable economy”, he added.
“The formation of the “Real Estate Exchange” is one of the measures that will encourage and support large-scale investment and housing production through the supply of land and the necessary financial facilities”, Rouhani noted.
He went on to say, “The government is seriously pursuing its monetary policies, including controlling liquidity and inflation, as well as managing financial markets, particularly currency prices.”
“The honorable people of Iran understand the conditions of the country and the problems that have inadvertently hindered the progress of the country’s economic programs, Rouhani said, adding: “I am confident that together we will overcome these difficult and unwanted conditions.”
Meanwhile on Monday evening and in a TV program, the governor of the Central Bank of Iran Abdolnasser Hemmati said that the recent shock in the market is because of the outbreak of Coronavirus and recent resolution of IAEA and it is transient.
He reiterated that the monetary policies of the bank are based on controlling the liquidity and setting inflation target of 22 percent for one year.
He also said that the drop in the volume of exports due to the pandemic was another factor for the shock in the market because the supply and demand has become unbalanced.
Hemmati further said that the yardstick for forex price is what is fixed in the NIMA system where the dollar is traded for 160,000 rials.
He noted that last year the country exported goods worth of $72b and $45b of the amount has returned to the country but the fate of remaining $27b is unknown and exporters should return it till the deadline.
He reiterated that the bank is not to inject dollar in market for curbing the price.
The dollar hit record high in Iran’s free market yesterday as each dollar was traded for 205000 rials.
