Veep Jahangiri: Iran to announce new mechanism to prevent further rial depreciation

MNA – The Iranian First Vice-President Es’hagh Jahangiri said Sat. that a new set of forex policies to bring the rial depreciation under control will be announced by Central Bank of Iran on Monday.

Eshagh Jahangiri made the remarks on the sidelines of a meeting of the Supreme Council of Economic Coordination in Tehran on Saturday.

According to the Iran’s state TV (IRIB), Jahangiri said that the new US sanctions will take effect within few days and will bring about a new economic situation in the country that requires new mechanisms and decisions on behalf of the government.

The Iranian vice-president further detailed that according to the new mechanism, the Central Bank of Iran (CBI) will supply ample hard currency to basic goods at the official rate, and the government bodies will monitor the distributed currency to make sure it will meet the market’s demands.

He also said that the final decision on the new mechanism will be discussed and finalized in tomorrow’s cabinet session.

Jahangiri further stated that the new mechanism will come into force from Monday after coordinating efforts with the newly-appointed CBI governor.

The government policies have so far failed to arrest the rial’s slide and two different rates continue to exist in official and free markets. By mid-week, the value of rial sharply declined and hit a new low against foreign currencies.

According to Iranian media, the new mechanism is a newly-established secondary market for transactions between currency suppliers and buyers to float pricing for US dollar. The government intends to take the pricing out of the hands of street dealers and foreign-based exchange shops.