Making preparations for the transfer of another 10 billion dollars

According to Iran Economist From Central Bank, Mohammad Reza Farzin; On Wednesday, October 5, the Governor General of the Central Bank, in continuation of the currency diplomacy of the 13th government, in order to increase the monetary and banking cooperation with the neighboring country and also to carry out the last step of transferring the freed foreign exchange resources of Iran to Qatari banks, went to Doha, the capital of this country.

In this trip, Farzin, who was accompanied by the Central Bank’s foreign exchange deputy, was accompanied by Mohammed bin Abdulrahman Al Thani, the Prime Minister of Qatar, Sheikh Bandar Bin Saud Al Thani; The Governor of the Central Bank of Qatar met and discussed.

In the joint meeting of the Governor General of the Central Bank of our country and the Governor of the Central Bank of Qatar, the necessary agreements were reached regarding the start of banking operations in order to use the foreign exchange resources transferred to 6 Iranian banks in Qatar, and practically the Central Bank of our country has full access to 5.5 billion euros. Foreign exchange resources of Iran and Qatar entered the implementation stage.

During the last years of the 1990s, nearly 7 billion dollars of our country’s foreign exchange resources were deposited in South Korean banks in the form of won (the national currency of South Korea) and they did not receive any interest. Even in these years, due to the decrease in the parity of the won to the dollar, nearly one billion dollars of it faced a decrease in the parity value; However, with the successful diplomatic and technical follow-up of the 13th government, all of Iran’s seized foreign currency resources in free South Korea and the costs of converting its currency from Won to Euro were also accepted by the third country.

Now these five billion 573 million 492 thousand euros (equivalent to 6 billion dollars) which were deposited into the accounts of 6 Iranian banks with the exemption from SWIFT sanctions, have been completely taken over by the central bank, and according to the head of the central bank, all the resources obtained are the bank’s reserves. They are the center and support of the rial, which will be used to strengthen the rial.

Content of negotiations

With the meeting between Farzin and Qatari officials on Wednesday and holding a technical meeting with the presence of bank officials from both sides on Thursday afternoon, the use of foreign exchange resources transferred to 6 Iranian banks in Qatar became operational, however, the visit of the Governor General of the Central Bank to Doha is likely Ziad was not only to finalize the amounts released from South Korea, and it seems that other topics were raised in the talks.

It is possible that in the recent negotiations, the parties have paid about one billion dollars for South Korea’s delay from Iran’s money. Also, it seems that freeing up Iran’s foreign exchange resources in several other countries and providing conditions for using these resources were among the issues raised in these intensive negotiations.

Market reaction

For a long time, the foreign exchange market was waiting for the transfer of foreign exchange resources and the access of the central bank to these resources, and there was a fear of the fall of the currency among currency dealers and so-called wealth holders. Since the announcement of the news and the finalization of the transfer of Iranian assets, the free exchange rate has been affected. And the attacks that the dollar made to reach 50 thousand tomans failed.

Many experts emphasize that freed foreign exchange resources, along with other central bank foreign exchange policies, will provide the conditions for stability and even further reduction of the free dollar rate.

including Mohammadreza Sabzalipour; The head of the country’s World Trade Center emphasized: the psychological atmosphere resulting from the release of blocked currencies reduces the inflammation of the currency market and stops the growth of the exchange rate in the market, and even if the exchange rate does not decrease, the exchange rate will remain stable.

Continuous steps of active diplomacy

Active economic diplomacy and using the capacities of friendly countries, especially neighbors, to develop the commercial and financial relations of the country has been one of the most prominent features of the 13th government, which is reflected in the president’s personal behavior and numerous intensive business trips. Seyyed Ebrahim Raisi It has been reflected in many countries.

In order to deepen the government’s economic diplomacy, the Governor General of the Central Bank has pursued the establishment and expansion of monetary and currency relations with countries since the day he assumed responsibility, and in the last 8 months, during his trip to China, the United States, the United Arab Emirates, Oman, and Qatar, he discussed currency issues and monetary interactions and has followed Banki seriously.

Revival of special right of withdrawal

In addition to having made several trips to the capitals of the region, the Governor General of the Central Bank has not neglected other capacities facing the country.

On the 9th of Khordad this year, Farzin traveled to America with the aim of meeting and talking with officials of the International Monetary Fund. During the visit of the Governor General of the Central Bank to Washington and the meeting with the head of the International Monetary Fund, which took place after many years, the possibility of using the equivalent of 6.7 billion dollars of our country’s Special Drawing Right (SDR) with the Fund was provided.

Another 10 billion dollars on the way

These 5.5 billion euros are not the only blocked foreign exchange resources of Iran, and investigations show that negotiations to release other resources of the country, including the resources in Iraq’s TBI bank, are being pursued.

Majidreza Hariri; The head of the Iran-China Chamber of Commerce has said that out of the 23 billion dollars saved abroad, about 6 billion dollars have been received from South Korea, and he has also announced that preparations are being made to transfer another 10 billion dollars.

A message of stability and peace to the market

The central bank has implemented various policies both on the supply side of the foreign exchange market and on the demand side, the most important of which has been the establishment of the Iranian currency and gold exchange center and responding to all the real demands of the economy. Also, by announcing and implementing the policy of stabilizing the exchange rate and providing currency for basic goods at the rate of 28,500 Tomans, he conveyed the message of stability to the market.

Now, with the step-by-step liberalization of the country’s foreign exchange resources and the market maker’s access to new resources, experts report the prospect of a calm foreign exchange market in the coming months.

In this regard, Ali Rezaei; Referring to the release of Iran’s blocked foreign exchange resources in South Korea, the member of the Economic Commission of the Islamic Council stated: The release of Iran’s blocked assets in South Korea will definitely have a positive effect on the currency market and will reduce fluctuations in this market.

Dawood Manzoor; The head of the Program and Budget Organization also stated in this regard that the more the central bank has available foreign currency, the better it will manage the country’s trade balance.

Also, Mohammad Javad Mohaghegh Nia; The analyst of monetary issues and Arziba pointed out that the release of foreign exchange resources will also have a positive effect on our foreign exchange relations, he stated: This issue will lead to a more open economic environment and the basic needs of our country will also be provided, which can further reduce the growth rate of liquidity. be effective As a result of reducing the liquidity growth rate, the inflation rate also decreases.
According to expert opinions based on fundamental developments in the country’s foreign exchange market, it seems that there will not be a strong fluctuation in the foreign exchange market until the end of the year, and since other assets are dependent on the exchange rate, we can hope for stability in the macroeconomic environment of the country.