Iran official: Sale of currency greater than imports

Iran Materials 12 January 2012 13:25 (UTC +04:00)

Azerbaijan, Baku, Jan. 12 /Trend M. Moezzi/

The Central Bank of Iran (CBI) should avoid any act that inflames Iran's currency markets, the Tabnak website reported quoting member of the Expediency Council and former economic minister Davoud Danesh-Jafari as saying.

Oil prices have been at $100 per barrel this year, so when non-oil exports are added it is clear Iran's total exports were at least $100 billion this year Danesh-Jafari said.

"Since the beginning of the year (Iran's solar year ends in March) about $60 billion worth of goods were imported as well as $20 billion of services and it doesn't seem that Iran's currency needs were more than $80 billion," he added.

It is clear that Iran isn't facing a shortage of foreign currency, but instead, individuals who don't need foreign currency for imports, but see it as a savings account have entered the market.

There are steps the central bank can take to solve the problems in the currency markets, said Mr. Danesh-Jafari. If the CBI took increased interest rates for a take up of bonds, a lot of loose liquidity would move in that direction, or direct it towards real estate.