Damages of foreign exchange fluctuation to Iran's economy

Business Materials 7 June 2019 09:52 (UTC +04:00)

Tehran, Iran, June 7


The challenge to Iran's economy is that the officials and the parliament couldn't create a proper framework for the foreign exchange rate to prevent strange fluctuations, Former deputy governor of Central Bank of Iran Heydar Mostakhdemin Hosseini told Trend.

"One of the main variables in economy is that policymakers should provide proper stability and environment for investment that the country needs," he said.

"The foreign exchange rate fluctuations have been under discussions for the last four decades. The economy should stand on secure ground, to serve people and the oil revenues shouldn't be tied to the everyday life of people," he said.

He went on to add that the foreign exchange rate in the country has been somewhat stable in the recent several months, but there's possibility that it would crash, due to lack of reforms.

"Currently, it is impossible to determine the real US dollar rate in Iran," Hosseini believes. "In a chaotic economic situation, where there are many variables involved, it's not possible to determine the real rate."

"When oil revenues reduce, the foreign exchange rate will rise," he said.