How did the government manage currency fluctuations?
In an interview with Iran Economist, Saeed Azimi said about the foreign exchange market: the dollar in informal markets could not maintain its support range again, and at the beginning of trading today, Saturday, May 23, the price decreased by more than one thousand tomans and reached the range of 51 thousand Toman arrived.
This foreign exchange expert continued: These days, the informal and informal currency market is continuously suppressed by the central bank, and the successful intervention of the market maker in all marginal markets has caused the prices to stop being affected by the whims of some people and continue its downward trend.
He added: In the past months, the central bank was able to transfer the majority of foreign exchange transactions to this market by creating an official market in the exchange center, so that the main core of foreign exchange transactions is formed in this center. Allocation of foreign currency through the Dutch auction blocked the ways for some people to profit from the price difference between the official and marginal markets, this greatly reduced the motivation to continue the existence of marginal markets and led to their shrinking.
Azimi stated: The central bank has been able to easily dominate the rate setting process in these markets by intervening in the marginal markets and also take over the power to control the supply and demand in these markets.
This foreign exchange expert said: In the past days, the dollar rate has been suppressed by the capital gains tax law, and the approval of this law has caused the risk of activity in this market to increase, and as the market dealers have said, Buying and selling dollars is no longer profitable for anyone.
Therefore, it was reported on Thursday of last week that the Governor General of the Central Bank said: In order to shorten the time of supply of foreign currency, the Central Bank will buy foreign currency directly from exporters and sell it to importers at a certain rate by eliminating intermediaries.
According to Mohammad Reza Farzin, the issue of currency is one of the basic issues of the country’s economy, and a major part of our efforts in the central bank and the government is aimed at creating peace in this market so that we can create stability in the country’s economy.
He stated that predicting the future of the economy and the market for economic activists is one of the main priorities of the Central Bank and emphasized: According to the slogan of the year, we will definitely adopt policies to remove fewer problems and obstacles.
end of message/