Iran considers liberalization of currency market, economist says

Finance Materials 4 December 2018 15:11 (UTC +04:00)

Tehran, Iran, Dec.4


Iran's government has taken new measures to control the currency market, which include liberalizing the buying and selling currency through foreign exchange traders, which was considered as smuggling for a few months back.

"The previous problem was that we had a NIMA market and a state-owned market, and the other markets were prohibited during the tenure of the ex-governor of the central bank," banking expert Bahaoddin Hosseini Hashemi told Trend.

"Although the other markets including free rate market, have a small volume of deals, they have a significant role in determining the exchange rates," he said.

"Fortunately, after some time, this market (the free rate market) is well-known, and the traders are engaged in it and they are directly buying foreign currency of exporters and providing the currency to those, who need it," said Hashemi.

“Although the market is only 10% of the volume of trading, it has a lot of impact, and it has been known that it was already causing market inflammation because it is illegal,” he said.

“The reform is already underway in the area of ​​currency policy. These reforms even allow for the possibility of single-currency rate,” he said.