Control of speculation and currency smuggling by the central bank

According to Iran Economist, one of the problems of the past years in the cloud economy comes back to the fluctuation in the currency market, and the organization of the currency market is always a concern. central bank and to achieve this goal, measures have been taken in different periods. Of course, the results of the measures have not always been acceptable and in many cases, not only has peace not reigned over the market, but the exchange rate, especially the dollar, has been accompanied by high ups and downs in the past years.

The economic team of the 13th government, headed by the central bank, has prioritized the organization of the currency market since the beginning of its activities.

One of the most important actions of the central bank in the past year is related to the end of June of this year, when the central bank reached the conclusion to organize the foreign exchange market in interaction with the center of exchanges, reputable exchanges and exporters, that the supply and demand agreement market should be launched.

Also, in order to stabilize the foreign exchange market and prevent the adverse effects of fluctuations and severe fluctuations in exchange rates on inflationary expectations, the central bank has taken significant measures in order to manage foreign exchange demand, curb and control speculative activities and currency smuggling, and prioritize import needs. Its most important effects have been the 54.7% reduction in the standard deviation of the dollar rate in the informal market and the supply of currency needed for importing goods into the country.

Providing currency needed for the import of basic goods

In 1400, a total of about 56.9 billion dollars of foreign currency was provided with preferential and half rates. Meanwhile, the total amount of foreign currency supply during 2019 was equal to 36.4 billion dollars. Also, in this year, about 15.6 billion dollars of foreign exchange for the import of basic goods, medicine, medical equipment and vaccines coronavirus Assigned at a preferential rate.

In the first four months of 1401, a total of about 20.1 billion dollars of foreign currency was provided for the import of goods needed by the country, while the amount of foreign currency provided during the first four months of 1400 was about 14.2 billion dollars. Of the total supply of foreign currency in the first quarter of this year, about 743.2 million dollars was at the preferential rate (from the quota of 1400), and about 2.0 billion dollars was at the secondary market rate, and the rest was from the Nima system and individuals’ currency.

Managing currency supply and demand and controlling market fluctuations

Managing the foreign exchange market in the face of market fluctuations by strengthening the integrated currency market by providing the possibility of selling export currencies at an agreed rate to exchanges and the possibility of agreed currency trading in the integrated foreign exchange market, as well as facilitating the regulations related to market demand in the field of banknotes, among the most important measures In the past year, the central bank has been part of the foreign exchange market.

Also, the separation of exchange demand (currency demand for importing goods and services) and speculation (currency demand for investment or maintaining currency value) and prioritizing import needs and curbing and controlling speculative activities and currency smuggling by imposing restrictions on transaction ceilings. Organizing guaranteed checks and monitoring the movement of large sums of money have been other effective policies of the Central Bank in the field of foreign exchange in the 13th government.

Consultation with commercial parties and neighboring countries in order to release foreign exchange resources from exports, setting up the system Clearing the foreign exchange obligation Importers with the aim of monitoring the fulfillment of the obligation of importers and creating transparency Information and performance, notification of the policy package for the return of foreign currency from exports of 1397-1400, facilitation of regulatory arrangements related to the import of items required by production sectors, design and creation of an online currency system to facilitate the process of buying foreign currency for natural persons and save the time of applicants and cover the needs In fact, the establishment of a joint working group between the Central Bank and the Ministry of Industry, Mining and Trade in order to coordinate the country’s foreign exchange and trade policies and direct the foreign currency from exports to the commercial and production cycle has also been given serious attention by the Central Bank since the beginning of the 13th government. existing defects and errors, the path of repairing the currency market should be followed more calmly in the way of stability.

Regulation with the aim of regulating the currency market

The central bank has also established regulations to manage the currency market. These regulations include announcing the ban on importing goods into the country without registering an order and determining the origin of foreign currency (all sources of entry) with the aim of organizing and regulating the demand for foreign currency, announcing the exemption of any amount of foreign currency entering the country (including bank notes and remittances) from paying taxes by Natural and legal entities, provision of regulatory platforms to create confidence among foreign currency depositors and the requirement to pay foreign currency cash interest to foreign currency deposits with the origin of bank notes by the banking network, prohibition of tomorrow trading of coins and currency, agreement with Russia It has been in this direction to develop monetary and banking cooperation and activate the Ruble-Rial symbol in the integrated currency market.

Kamran Rahimi, a member of the faculty of the university, in an interview with Iran Economist, stated: In the discussion of the foreign exchange market, the Central Bank has paid attention to the two parts of currency supply and demand, which fortunately was present in the last year’s program of this bank and in the demand part. And the currency supply sector of many actions are you well done.

Referring to the words of the Governor General of the Central Bank about the 80% increase in the supply of foreign currency in the Nima system at the end of July compared to the same period last year, he continued: if the Central Bank continues the same current trend and there will be a special problem in the supply of foreign currency in the markets If there is no currency exchange, a major part of the foreign exchange demand in the country will be compensated and we will no longer see fluctuations in the currency market.

This Iranian economic expert emphasized: If the fluctuation of the dollar price in Iran’s economy is controlled, we can hope for a reduction in inflationary expectations, and this issue can also cause a reduction in inflation in Iran’s economy.