Iran government's foreign exchange center to buy currency

Business Materials 27 September 2012 12:21 (UTC +04:00)

Azerbaijan, Baku, Sept. 27/ Trend M. Moezzi

Iran's Central Bank will begin buying currency from the public at its foreign exchange centre.

Using price discovery to determine daily rates, the bank will start buying foreign currency from Iranians and selling it to others for essential purchases, Deputy Industry Minister Hamid Safdel told the Iranian Students' News Agency (ISNA). Price discovery uses supply and demand for setting a commodity's price.

In response to a question as to whether the rates offered by the foreign exchange centre will be lower than those on the free market, Mr. Safdel said the public is free to choose where it wants to buy foreign currency from, but experts have concluded buyers want the security of dealing with the Central Bank.

More banks will begin operating at the centre, the deputy minister said.

Iran's government opened the foreign exchange centre on Monday in an effort to stop the rial's (Iran's national currency) plunge in value as a result of economic sanctions imposed by the West.