Iranian Central Bank increases USD rate by 10.5 percent
Azerbaijan , Baku, June 9 / Trend/
The Central Bank of Iran's surprising decision to increase USD rate by 10.5 percent and euro rate up by11 percent will indicate decline of rial's value with regard to foreign currencies, daily Donya-e-Eqtesad reported.
The Governor of Central Bank of Iran (CBI) said earlier that CBI plans to reduce the gap in independent foreign exchange market and rates in official exchange market. However, the decision had a negative effect on independent foreign exchange market and USD rate rose again on Wednesday.
The increase of exchange rate can have profit for domestic producers in short time; but, it also increases inflation rate.
The inflation rate reported by CBI in May was 14.2 percent while the Statistical Center of Iran announced 16.7 percent inflation.
In case the CBI has the sufficient USD supply it can decide to stabilize or reduce the exchange rate. The CBI increased USD to 10.5 percent and euro to 11 percent on Wednesday.
The CBI decided to equalize the exchange rate by increasing USD from 10,590 rials to 11,710 rials , the rate of euro increased from 17,200 rials to 17,180 rials in Wednesday; however, the increase of USD in independent foreign exchange market reached to 12, 150 rials while euro traded for 17,500 rials.