What is the central bank’s plan to control the currency market in 1402?
According to Iran EconomistIn the last days and weeks of February, the currency market witnessed a lot of excitement and the dollar entered the channel of 40,000 and 50,000 tomans and reached the peak of 60,000 tomans for a few days. This increase in prices was the result of various conditions that fueled the inflammation of the currency market and the creation of inflationary expectations, and these days coincided with the change of the new head of the central bank.
The 13th government, which always sought to control the existing inflationary situation, presented the currency package policy and gave the central bank full authority to control the market. Farzin, the new head of the central bank, announced the opening of the currency and gold exchange center in the first days of his work at the central bank, and this center started its work on March 3rd.
Farzin explained about this center that when the currency exchange center starts working, all domestic needs of the country will be provided in this center and the exchange rate will be discovered according to sources, currency costs and fundamental factors.
Now that more than a month has passed since the start of the gold and currency exchange center, Mohammad Reza Farzin mentioned the gold and currency exchange center in his TV interview about the control of the foreign exchange market and said: In the gold and currency exchange center, several instruments are used in the year. We are currently launching.
He added: In the first step, we will launch the currency stabilization fund and we will use the resources of the currency stabilization fund to intervene in the market in cases where it is necessary to stabilize the exchange rate.
The Governor of the Central Bank stated: The second tool is foreign exchange advances, we do not have foreign exchange advances in the Iranian market, and currently we have the exchange rate of tomorrow, which is a type of foreign exchange advance, but we plan to prepare foreign exchange advances with a longer period so that the exchange rate can be adjusted. Let’s predict that a person will buy the currency he needs at a certain price at least in the next month.
Farzin said: The third tool is the currency swap, the currency swap is very necessary in our country, because the balance in a country must be clear, and for example, we have the most imports with one country, but the exports are low, but with the other country, the exports are high, but We have few imports and this causes our currency balance to suffer, and in these cases, currency swap helps us a lot.