MP: Ahmadinejad keeps Iran currency market in turmoil

Iran Materials 30 September 2012 16:16 (UTC +04:00)

Azerbaijan, Baku, Sept. 30/ Trend M. Moezzi

A member of Iran's parliament accused President Mahmoud Ahmadinejad of deliberately keeping the nation's currency market in a state of chaos.

Elias Naderan, a member of the Majlis' (parliament) economic commission, told Mehr news agency that he regrets the "minute by minute" increase in the dollar's value, and wondered what President Ahmadinejad plans to do about the disarray in the currency market.

The MP contended that the dollar's soaring climb in value isn't caused by inefficiency and incompetence. It is, said Mr. Naderan, completely planned.

Reports about Iran's oil sales and its currency reserves show no indication of why the currency market is in such disarray, said Mr. Naderan.

Today, traders set the dollar's value at 29,700 rials. Yesterday the currency was priced at 27,500 rials.

The Iranian government launched the Iran Forex Center officially on September 24 in an effort to stop the rial's (Iran's national currency) plunge in value. The new foreign exchange center allows importers of goods, including truck tires, construction equipment and synthetic fibers to buy dollars at a rate two per cent cheaper than the street rate at any given time.

At 12,260 rials, the dollar's official exchange rate (reference rate), set by the Central Bank of Iran, is 17,440 rials less than today's free market rate.