Official: Forex rates in Iran determined by individuals rather than market

Iran Materials 5 September 2012 12:12 (UTC +04:00)

Azerbaijan, Baku, Sep.5/ Trend F.Milad/

Some individuals inside and outside the country decide on foreign currency rates in Iran and market factors are not influential in this regard, an official with the ministry of finance and economic affairs stated.

Reza Azimi, the director for monetary and fiscal policies at the ministry told the Fars news agency that the gap between official and unofficial rates of foreign currencies have discouraged exporters.

He referred to the foreign currency bourse as a means which can help transparent Forex transactions.

Iran's foreign exchange trading market will be inaugurated by the end of the current calendar month of Shahriver (September 21), aiming to create a balance between the official and free market rates of foreign currencies, the ISNA News Agency reported.

The Central Bank of Iran has approved general outlines of launching a foreign exchange market, Finance and Economic Affairs Minister Shamseddin Hosseini told the Mehr News Agency.

The foreign exchange market is a form of exchange for the global decentralised trading of international currencies. In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency.