Foreign currency rate in Iran to drop if people avoid exchanging - CBI chief

Finance Materials 25 March 2019 13:10 (UTC +04:00)

Tehran, Iran, March 25


The Governor of Central Bank of Iran(CBI) Abdolnasser Hemati has indicated that the foreign exchange rate in the country is still not real.

Hemmati said there is psychological pressure, so if people avoid trading foreign currency the rates would drop fast, Trend reports via ISNA.

"A portion of country's foreign currency reserves are at the foreign banks that are used for imports. The country should have foreign currency inside and outside and the government has certain plans regarding this," he said.

"The government says people should avoid trading foreign currency and invest their capital in production," Hemmati said.

He also mentioned some businessmen who abused the banking loans for imports and influenced official foreign exchange rates, saying that in the new Iranian year (started March 21, 2019) the CBI would implement more control and monitoring over this.

The official noted that the foreign exchange rate problem in the previous years was the biggest issue for Iran's banking system.

"On my first day of work, USD was 110,700 rials, then hiked to 200,000 rials," he said.