Integrated currency market in Iran to reduce currency fluctuations?

Finance Materials 11 April 2019 17:28 (UTC +04:00)

Tehran, Iran, April 11


Spokeswoman for the Economic Commission at Iran's parliament Zahra Saeedi said that strengths and weaknesses should be measured before any decision is made regarding the creation of the Integrated Currency Market in Iran, because the country's economic conditions do not endure the trial and error.

Meanwhile, the the Central Bank of Iran is going to launch a unified currency market that would handle the flow of money to and from banks and currency exchanges.

Saeedi said that the main function of this market is to organize and establish the order in the foreign exchange market.

"It can be expected that the exchange rate will be controlled," she said.

“Consequently, all financial market standards and scientific arguments must be considered for the regulation of this market," she added.

The integrated market, focusing on banknotes, would regulate the retail and wholesale purchases in the form of cash or electronic trade, the CBI governor Abdolnasser Hemmati said in January.

According to him, the Central Bank of Iran will handle the new currency market, designed to control the trade of banknotes in large quantities in banks and currency exchanges.

On March 3, Hemmati announced that the integrated exchange market is set to start operating in April.