BAKU, Azerbaijan, Oct. 28
By Elnur Baghishov - Trend:
Investing in Iran’s foreign exchange market is no longer profitable, said Mohammad Lahouti, chairman of the Board of Directors of Iran’s Export Confederation, Trend reports referring to Mehr news agency.
Lahouti noted that this investment may be even harmful, because the formation of the foreign exchange market hasn’t been completed yet.
Given the economic factors in Iran, the price of the US dollar will continue decreasing, and therefore $1 is expected to fall to 100,000 rials, the chairman added.
“The economic factors indicate that Iran’s Central Bank and the Ministry of Industry, Mine and Trade have been able to achieve balance between the amount of foreign currency spent on imports and obtained from exports,” Lahouti noted.
The chairman of the confederation said that for the first time this Iranian year (began March 21, 2019), it became possible to meet Iran’s foreign currency needs through exports.
“Despite the decline in Iran’s oil sales in world markets, the foreign currency from oil revenues belongs to the government and has been transferred to the Iranian Central Bank as a reserve for regulating the foreign exchange market,” Lahouti said.
As a result of devaluation in Iran last summer, the price of $1 in the black market increased from 35,000 rials to over 200,000 rials. Later, as a result of the intervention of the Iranian Central Bank, the exchange rate of the US dollar decreased. Presently, $1 equals to 112,000 rials in the Iranian black market.