Central Bank of Iran to flood market with exchange following hike against rial

Business Materials 15 November 2015 19:47 (UTC +04:00)

Tehran, Iran, November 15

By Mehdi Sepahvand -- Trend:

The Central Bank of Iran is going to flood the country's exchange market with more foreign currency that before following a recent hike in prices.

The Central Bank of Iran confirms that the US dollar has reached the borderline of 36,000 rials (Iranian currency), Samad Karimi, director of the Exports Office of the bank said, Tasnim reported November 15.

He said that the hike lacks authentic economic bases and will subside soon, inviting companies and other economic bodies to refrain from excited behavior.

According to the official, demand for foreign exchange gained momentum after Iran's nuclear deal of July.

The dollar was exchanged in Iran's free market for about 33,000 rials in the days leading to the nuclear deal of July 14. However, it reached a six-month peak the very following week to hit 34,000.

Iran is expecting economic sanctions to be lifted in a couple of months. This will reconnect Iran to the SWIFT (Society for Worldwide Interbank Financial Telecommunication), which has opened up prospects for opening LCs by economic enterprises in Iran, leading to a hike in demand for foreign currencies.

Foreign exchange rose quickly against the Iranian rial in the final years of former president Mahmoud Ahmadinejad at office. However, as Hassan Rouhani came to power in 2013, the Central Bank of Iran fought the hike by sending more exchange to the market.