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Iran hopes to stabilize foreign currency market

Business Materials 30 November 2015 20:48 (UTC +04:00)

Baku, Azerbaijan, Nov. 30

By Khalid Kazimov - Trend:

The Governor of the Central Bank of Iran Valiollah Seif has expressed hope that the country's foreign currency market will be stablalized soon.

He said that the prices of the foreign currencies in Iran have hiked due to high demand which is quite normal in the current period of year, IRNA news agency reported Nov 30.

He announced government's recent decision to form a new stock market for foreign currencies aimed at stabilizing the prices of foreign currencies in Iran. However he refused to announce the date for inaugurating the stock market linking it with the removal of sanctions.

Earlier in November 26, Mohammad Reza Sabzalipour, head of Iran's World Trade Center, told Trend that the rising trend of US dollar will continue in Iran, forecasting that it will most likely hit 40,000 rials in the free market by March 2016.

He said that while following a July nuclear deal between Iran and the world powers, the price of the US dollar was expected to fall in Iranian market, it went to significant increase, making the foreign currency market insecure.

According to Sabzalipour, remaining sanctions, embargo on oil exports, huge fall in global oil prices and high demand for foreign currencies are among the main behind the dollar rise in Iran.

After tightening sanctions against Tehran, Iran's national currency, the rial, devalued by 50 percent in less than a week in October 2012, standing at 35,500 versus the US dollar. It was close to 10,000 in early 2011.

The July 14 agreement on Iran's nuclear program had lowered the prices to some extent. On the very day the deal was struck, the US dollar went as low as 31,800 rials, only to jump to 32,450 the next day.

The rising trend of US dollar continues in Iran's free market as the US currency sold at 36,360 rials on Nov. 30 according to IRNA.

The Central Bank of Iran has put the official rate of US dollar, at 30,071 rials on Nov. 30.

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