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Has Iran's foreign exchange rate policy failed?

Business Materials 18 March 2019 18:56 (UTC +04:00)

Tehran, Iran, March.18

Trend:

The former head of Tehran Chamber of Commerce believes the official foreign exchange rate policy of 42,000 rial per dollar has not failed, however, he thinks the real USD rate is 70,000 to 80,000 rial.

The new official dollar rate was announced by the first vice president Eshaq Jahangiri for the first time. Some believed the foreign exchange rate fluctuation was to increase the prices since the rate of dollar was less than 40,000 rial at first and then the government's foreign exchange rate policy of 42,000 rial per dollar was launched."

However, after the VP announcement, the foreign exchange rate continued to rise at the market, this time there were three rates for foreign currency, the official, NIMA and market rate.

Meanwhile, the official USD rate was falling, while the issue of returning exports revenues to NIMA system caused problems for government and importers and exporters. Two officials have recently announced that the official 42,000 rial dollar rate policy will be abandoned due to its failure. The Governor of Central Bank of Iran Abdolnaser Hemmati has posted about the official foreign exchange rate on his Instagram account while the Economy Minister confirmed the comments during a joint press conference with Hemmati, saying it ШЫ possible that the foreign exchange rate policies would be reviewed.

The issue has been discussed twice in a week and officials have insisted on the official foreign exchange rate policy, however the experts have long been insisting that government policy over this issue will fail.

However, some believe that such policies are depend on time and can change, the Former Head of Tehran Chamber of Commerce Yahya Al-Eshaq has supported the change of policies in an interview with Trend.

"Policy is basically depends on time and follows the necessities of the time. Now the situation is different from the first time that the official 42,000 rial foreign exchange rate has announced. On those days, we were in the foreign currency crisis and there was prediction of rise of USD rate to 200,000 and 250,000 rial, the concern of people over the rise of rates has led the government to prevent the chaotic atmosphere," he added.

He also mentioned the real price of dollar is around 70,000 to 80,000 rial.

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