Iran's economy affected by multiple foreign currency rates

Business Materials 29 July 2019 13:14 (UTC +04:00)

Tehran, Iran, July 29


Multiple foreign currency rates is one of the problems in our economy, member of the Monetary and Banking Research Institute in Iran Kamran Nadri told Trend.

"Individuals that are able to buy official foreign currency rate of 42,000 rials per dollar, have no motivation in productive activities, they seek to find cheap foreign currency rate and sell it with higher price in the free market," he said.

"Assigning official foreign currency rate in the country currently isn't correct since it is a valuable source for the country, given the situation with sanctions," he said.

"With this policy, demands for cheap foreign currency rate will increase and abusers will be gaining profit from the price difference," he explained.

"In recent months, the foreign currency rate in the NIMA system has been increasing, while the free market rate had failing tendencies," he added.

"If we compare the inflation rate from April 21 with June 22 you can see that it has a declining flow and the process of equalizing foreign currency rate has affected the fall of inflation rate to some extent," he said.