Unified US dollar rate to be established in Iran in next 10 months

Business Materials 20 July 2015 15:16 (UTC +04:00)

Baku, Azerbaijan, July 20

By Fatih Karimov - Trend: The US dollar rates will be unified in Iran in the next 10 months, said Valiollah Seif, the governor of the Central Bank of Iran.

"Establishing the unification system will take time. My prediction is that the system will be established in eight-10 months time," Iran's Mehr news agency quoted Seif as saying July 20.

The foreign currency market is currently balanced and it does not seem to need a considerable shock, he added.

Of course, foreign currency prices will keep decreasing in the wake of the nuclear deal, but the market will return to the balanced situation, he noted.

Today, the difference in prices of the official rate and the free market rate dollar, i.e. 29,500 rials and 32,200 rials, is not a big difference, he said.

Seif said on July 5 that foreign currency rates would be unified in Iran five-six months after sanctions against the country are lifted.

"The main responsibility of the Central Bank is to curb transient shocks to the market. We feel that the market is currently stabilized, but foreign currency rates may fall slightly after the unification process," he added.

In April, Seif said the Central Bank of Iran does not intend to prevent the falling trend of foreign currency prices.

He added that if the nuclear talks culminate and prices of foreign currencies fall the bank will only monitor fluctuations and curb price shocks.

Foreign currency prices in Iran were nearly steady over a decade, but the US dollar has almost tripled against the Iranian rial since three years ago.

After 18 days of marathon talks in the Austrian capital of Vienna, Iran and the P5+1 group of world powers - the United States, Britain, France, China, Russia and Germany - reached an agreement on the Joint Comprehensive Plan of Action (JCPOA), which will put limits on Iran's nuclear program in exchange for the removal of sanctions against the Islamic Republic.

Edited by CN