Forex market re-stabilized: CBI governor

December 15, 2019 - 15:27

TEHRAN –Central Bank of Iran (CBI) Governor Abdolnaser Hemmati said the forex market has been re-stabilized in the country.

He made the remarks during a gathering of the country’s economists in Tehran on Sunday, CBI’s Public Relations Department reported.

In the meeting, which was hosted by the CBI, Hemmati discussed issues like stabilization of the foreign currency exchange market, liquidity control, inflation, and the budget bill with the economists.

The official said that despite the continued pressure from U.S. sanctions, the country's non-oil exports continue to rise and the Forex Management Integrated System, locally known as NIMA, is supplying the importers with their required foreign currency.

Mentioning some rumors about a fall in the country’s non-oil exports, Hemmati said the country's non-oil exports increased in terms of weight in the first eight months of the current calendar year (March 21-November 23), however modifying some of the base export prices led to some decrease in the value of exports.

“The country's non-oil export trend is growing and there is no worry about that,” he added.

Despite the fluctuations in the foreign currency market in recent weeks, fortunately the central bank's management has restored balance in this market, he emphasized.

“CBI intends to benefit from other countries’ experiences in open market operations by holding workshops in this regard,” Hemmati said.

Hemmati also pointed to the month-on-month drop in the producer price inflation in November, saying: "These figures indicate the central bank's success in controlling inflation, and despite recent fluctuations in the currency market and other markets, we strive to keep the markets calm and balanced and consequently keep the inflation down.”

The economists at the meeting also appreciated the central bank's efforts for maintaining the balance in the foreign exchange market through setting up the integrated forex market as well as open market operations, saying that these are two of the most important outcomes of CBI’s monetary and currency policy making.

EF/MA

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