CBI governor: conducting export operations in rials is not sensible
Baku, Azerbaijan, July 17
By Elnur Baghishov - Trend:
Conducting export operations in rials is neither economically nor nationally sensible, Governor of the Central Bank of Iran (CBI) Abdolnaser Hemmati said at a meeting with businessmen in Isfahan, Trend reports referring to IRNA.
According to Hemmati, this is because exports made via rials can lead to added value leaving the country and the weakening of exports.
He added that if exports are to be made in rials, then it will be essentially tantamount to making investments in other countries, not benefiting Iran. "Foreign currencies or products must return to the country in return for the exports," he said.
Hemmati said that prevention of attempted transactions made in rials under the guise of fictitious persons and stolen identities has helped not to allow them to affect the dollar exchange rate.Moreover, limitations have been imposed on the usage of bank checks, and the bank’s governor brought up a case involving transactions for $200 billion having been made via bank checks by a four-year-old child in February-March.
"The Central Bank of Iran stands in the way of false mediators, so that local production can grow," he said.
Due to the Iranian national currency having experienced devaluation last year, a number of exporters in Iran support the export of products in a way which takes Iran’s official exchange rate into account.
As a result of the devaluation in Iran, the price of $1 rose from 35,000 rials to 200,000 rials. Later, with the Iranian government’s intervention, the dollar prices dropped. At present, the price of $1 in the Iranian black market varies between 122,000-125,000 rials.
With the official exchange rate ($1=42,000 rials), it is only possible to import some essential products in Iran.