TEHRAN, Iran, Aug. 31
Trend:
It is predicted that the USD rate would increase in Iran's foreign currency market in case the negotiations over the Joint Comprehensive Plan of Action (JCPOA) would not conclude, said an economic expert, Trend reports citing ILNA.
"If we assume that Vienna negotiation would not be successful by the end of the current Iranian year (started March 21, 2021), the price of foreign currency rate increases due to decline of Iran's foreign currency reserves and high costs of government's promised projects," said Bahahodin Hosseini Hashemi
"Considering that we have a short amount of foreign currency resources and a wide gap between official foreign currency rate and the free market rate, it is expected that exporters do not return export's foreign currency revenues," he indicated.
Some exporters did not comply with their commitment set by the Central Bank of Iran for re-injection of their export foreign currency revenues into the country’s Forex Management Integrated System locally known as NIMA.
"Therefore the demand for foreign currency rises and due to limited resources, foreign currency rate will increase and since other commodity prices are connected to it the inflation rate would increase as well," he noted.
The JCPOA revival would not solve Iran's economic problem and Iran needs to join the Financial Action Task Force (FATF) by approving the related FATF bills. Even with the revival of the JCPOA and accession to the FATF, the country's economic problems would not be solved in the short term because Iranian banks are not ready for transactions with the international market.
"It is expected a new economic team would start policies to reform banking structure," he added.
The dollar rate in Iran's foreign currency market has eased to 220,000 rials in March and April on hopes for result in Vienna negotiations but the talks stopped in June for the new President Ebrahim Raisi to work on policy that caused an increase of US dollar rate and currently, the rate is up to 280,000 rials.