TEHRAN, Iran, Dec.11
Trend:
"Given the increase in gasoline prices, the hike in currency rate by 4 to 5 percent is natural, but further increase needs economic justification,” head of the Iran's Confederation of Exports said.
"The reasons for the exchange rate rise must be explained by several factors; whether we like it or not, the rise in gas prices will affect all commodity rates,” Mohammad Lahouti said, Trend reports citing ILNA.
"In addition, rise in gas prices has caused concern in the community and whenever there is public concern and instability, gold price and the currency rate will be affected immediately,” he added.
Lahouti noted that the decline in exports and disruption due to the events in Iraq have also affected the supply of currency.
“However, the most important is the psychological factor that fueled the hike in currency rate,” the official added.