Iran government criticizes volatile currency market

Business Materials 16 February 2016 15:05 (UTC +04:00)

Tehran, Iran, February 16

By Mehdi Sepahvand - Trend:

Iranian government spokesperson, Mohammad-Baqer Nobakht, has criticized the volatile exchange rates in the country.

That is a problem that people treat currency as commodity in Iran, storing them at homes for later sale at higher prices, Nobakht said at the press conference, Trend's correspondent reported for the event.

Urging for "reasonable and real" prices for foreign currencies against Iran's national currency of rial, Nobakht stressed the need for fixing the currency rate.

He touched upon the "irrational" increase of currency rates in the country and said the government is looking to strengthen the national currency.

In the Iranian free market, the US dollar was sold at 34608 rials this morning compared to 36,252 on Feb.1, meanwhile euro was traded at 39,272 rials, on Feb. 16, compared to 39,798 on the preceding day.

The Central Bank of Iran put the official rates of US dollar at 30185 and euro at 33,663 rials today.

While the removal of international sanctions against Iran offers a new outlook for a large emerging untapped market, the risk of exchange rate fluctuations remains as a major barrier for drawing the attention of international investors as the government has been developing plans for
luring $30 billion of foreign investment to renew the country's industry and economy.