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Iran's Parliament reveals reason for dollar price rise at country's markets

Iran Materials 10 September 2012 13:08
Iranian parliament has explained the reason for sudden dollar prices rise at the markets, Fars reported.
Iran's Parliament reveals reason for dollar price rise at country's markets

Azerbaijan, Baku, Sept. 10 /Trend S.Isayev, T. Jafarov/

Iranian parliament has explained the reason for sudden dollar prices rise at the markets, Fars reported.

According to Parliamentary Economic Committee head Gholamreza Mesbahi Moqaddam, the market prices jumped up because country's Central Bank stopped supplying it with dollars.

"Now, rent-seeking is being observed at the markets, due to high price difference between bank's rate and the market rate," Moqaddam said. "The Central Bank only issues dollars on essential commodities and medicine."

He said that this was Iran's biggest historic mistake.

"The Central Bank stopped supplying the market with dollars three weeks ago, a move that sharply increased the dollar prices at the market," Moqaddam underscored.

He added that a stock exchange would be the best solution to implement as part of country's fifth development plan, to establish steady floating of prices at the markets.

U.S. dollar rose by more than 1,000 rials in Iran's unofficial market on Sunday, reaching 23,850 rilas compared with 22,810 rials on Saturday, the Fars news agency reported.

Pound and Euro were also traded at 37,200 rials and 30,500 rials compared with 36,000 rials and 29,100 rials on Saturday.

Each ounce of gold was sold at 1736 dollars in international markets, compared to 1692 dollars a week ago.

Iran's central bank allowed trading in its currency at market levels after fixing the exchange rate in January as the threat of sanctions over the country's nuclear program and economic risks spurred Iranians to buy up dollars.

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