CBI granted more authority to manage forex market
Heads of the three branches of the Iranian government approved a resolution based on which the Central Bank of Iran (CBI) is given complete authority to take the necessary measures for managing the foreign currency exchange market.
Following the recent fluctuations in the forex market, the CBI sent a proposal package to the government, requesting new authorities to be able to manage the market, Tasnim News Agency reported.
The package was assessed and approved in a meeting attended by President Ebrahim Raeisi and the heads of the government’s two other branches on Sunday evening.
Iranian Finance and Economic Affairs Minister Ehsan Khandouzi told the press on Monday that based on the approved resolution, all the country’s industries and exporting bodies, even the state-run ones, including the oil and gas industry, will follow the CBI’s new policies for managing forex market.
“The central bank needed new authorities to be able to intervene effectively in the forex market, and to this end, the package was approved by the government at the meeting of the heads of the three branches,” Khandouzi said.
Iran’s rial currency has rebounded from historic lows reported in recent days after the CBI intervened to control the prices in the market.
The rial closed at 550,000 against the U.S. dollar on Sunday hours after it reached an all-time low of 610,000 against the greenback.
Some private exchange shops in Tehran had been offering the greenback for 525,000 rials on Monday.
IRNA said the rebound was a result of policies introduced in recent days by the CBI, including the launch of a new foreign exchange center which helped satiate demand for hard currencies.
Another report by the Tasnim News Agency said many savers who had bought hard currencies in recent days were lining up in front of exchange shops to sell.
“Market participants expect the reduction in the price of foreign exchange will continue,” said the report, adding that new CBI directives would further impact the market in the coming days.