Iranian banker urges for unification of currency rates

Business Materials 27 February 2018 16:17 (UTC +04:00)

Tehran, Iran, Feb. 27

By Kamyar Eghbalnejad – Trend:

Former governor of Central Bank of Iran (CBI) , Tahmasb Mazaheri, has called for the unification of currency rates in the country.

He further criticized a recent decision by the Central Bank of Iran on issuing bonds with an interest rate of 20 percent and said the decision would create larger problems for the balance sheets of banks.

In an interview with Trend, he said that it is vital to introduce a single currency rate in the country, adding that postponing the plan would impose more damages to the country’s economic system.

Valiolah Seif the governor of the Central Bank of Iran earlier said that the country's currency market has calmed down after a several weeks of turmoil that shot the rates of foreign currencies through the ceiling.

Rial continued its gain against the US dollar in Tehran's foreign exchange market, as the Central Bank of Iran pushed through with its rescue package to stabilize the currency that had lost a quarter of its value within six months.

The rial was trading at 44,674 to the dollar on Tuesday, strengthening from 45,391 a week ago. The stability comes after CBI combined its package, which includes a significant deposit rate increase, with a police crackdown on unregulated currency traders.

The CBI since 2012 has repeatedly said it is going to eliminate the multi-tier exchange rate in the country but it has achieved no obvious results, so far.