Baku, Azerbaijan, Nov. 8
By Farhad Daneshvar – Trend:
An Iranian financial expert has forecasted that the value of US dollar against rial, the country’s national currency, would increase if the government fails to adopt the required financial policies.
If the government does not take necessary measures to protect the rial, the price of per dollar against the country’s national currency would reach 40,000 rial over the next Iranian calendar year (starting March 21), the former governor of the Central Bank of Iran (CBI), Tahmasb Mazaheri, said during a televised interview aired by the state broadcaster.
The CBI put the official rate of dollar at 31,865 rials on November 8. However the US dollar is hovering about 36,000 rials on the free market on the same day.
The former official further called on the government to abandon the country’s current two-tier currency market and set a system to offer the foreign currency at a single rate.
Over the past several years, Iranian national currency has lost its value, as in early 2011, the US dollar was traded at 10,000 rials.
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.
The situation in Iran’s currency market needs to improve as a stable currency market is an initial requirement for attracting foreign investors into the country.
Iranian President Hassan Rouhani's government has been developing plans for luring $30 billion worth of foreign investment in the post-sanctions era to renew the country's ageing industry and ailing economy.
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