Currency market fully under control: CBI governor

January 7, 2020 - 16:1

TEHRAN – The Governor of the Central Bank of Iran (CBI) says the bank is fully controlling the foreign currency market and people should not have any worries over the exchange rates.

“There are no worries regarding unpredictable shocks in the market and people don’t have to worry about sudden rises in the exchange rates,” Abdolnaser Hemmati told ILNA on Tuesday.

Asked about the supply of foreign currency for the imports of basic goods in the upcoming year, Hemmati said: “Necessary provisions have been made in this regard and we have not only considered the foreign currency needed for the imports of basic goods but also for the imports of raw materials and machinery by our producers.”

Pointing to the preferential trade agreement with the Eurasian Economic Union (EAEU), the official said the processes for trade with these countries is well underway and the situation will improve and new capacities will be created for increasing the country’s exports.

Following the assassination of Lieutenant General Qassem Soleimani in a U.S air raid in Iraq on Friday, Iran’s foreign currency market undergone some fluctuations. The central bank, however, believes that such changes in the currency exchange rates are short term and the CBI management has restored balance in this market.

Since the re-imposition of U.S. sanctions on Iran, the central bank has been seeking ways to protect the national currency with measures that include setting up a government-run foreign-exchange platform known as NIMA to quell the black market and controlling interest rates.

Back in December 2019, Hemmati had said that the country’s forex market was re-stabilized after a turbulent year.

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.