Central Bank Governor: Market to decide foreign currency rates

Tehran, Sept 9, IRNA – Foreign currency exchange rates fluctuations decreased by 54% during past five months of 1394 (March 20-Aug 20) but harness to fluctuations is impossible, so market would decide, Governor of Central Bank of Iran Valiollah Seif said on Saturday.

Seif made the remarks speaking to a nationwide conference of the country’s security officers.
He said that ordering foreign currency exchange rates is practically impossible and the market is the best means to decide about.
He said that during the tenure of the previous Iranian government the Central Bank delivered 22 billion dollars to the market in an 18 month period, supposedly aimed at lowering the foreign currency exchange rates, but that does not mean increasing the national currency’s value as that value increases due to gross national products and low unemployment rate.
Meanwhile, Seif appreciated the positive performance of a website that announced the average foreign currency exchange rates every day, arguing that the rates announced in ‘www.sana.ir’ website are real.
He said that the economic stability in Iran has become available thanks to the appropriate security provided by the incumbent government, a major part of which is indebted to the appropriate performance of the Intelligence Ministry.
Seif referred to the government’s success to harness the inflation rate, saying that inflation is currently 15.5% compared to the inflation rate during former president’s tenure, which was on the average 40%.
He said that in the course of the past two years the inflation rate even reached 9% at a point, but, it was not fixed there due to various factors.
‘The government’s goal is to achieve a sustainable single-digit inflation rate within the next two years,’ the CBI governor said.