Iran ditched single-currency rate policy to avoid US trap, top banker says

Tasnim – Governor of the Central Bank of Iran defended ditching the idea of a single dollar exchange rate as a strategy to avoid the US government’s trap and counter its attempts at stepping up economic pressure on Iran.

Addressing a conference on ‘Islamic banking’ in Tehran on Saturday, CBI Chief Abdolnasser Hemati said the US government seeks to deprive Iran of its oil revenues and hinder its financial transactions.

Under such circumstances, he added, it was not possible to stick to a single rate for currency exchange but it was necessary to avoid the trap of US policies.

Regreting a drastic increase in liquidity in Iran, Hemati said the CBI carried out new currency policies in coordination with the country’s three branches of power which stabilized the currency market situation.

The Iranian money has plunged to a record low against the US dollar in recent weeks.

Foreign currency values began to rise in Iran after the US withdrew from the Iran nuclear deal in May and announced plans for a fresh wave of sanctions against the Islamic Republic.

In comments on August 13, Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei said the economic problems are not wholly caused by the foreign sanctions, but a series of internal issues and mismanagement are also to blame.

Making a reference to the hike in gold coin prices and devaluation of the Iranian money in recent weeks, the Leader said some of the problems are caused by imprudence and mismanagement, irrespective of sanctions.