MNA – The CBI’s planned Regulated Foreign Exchange Market will be formed by the end of the present Iranian month, Khordad, (June 21, 2019), Mohammadreza Pourebrahimi, the Chairman of Iran’s Parliament Economic Committee said on Monday.
“The market is expected to reduce foreign exchange rates and increase their supply by CBI,” the PM said.
Expressing content about the recent forex policies applied by the government and the central bank, he underlined that formation of the regulated market will organize domestic forex market without any negative consequences.
“The first advantage of the regulated market would be making the market balanced via fair distribution of forex resources among domestic exporters who have re-injected their exports revenues back into the economy cycle,” he described.
He also noted that the regulated market will impede rent and corruption caused by the different rating system of foreign currencies.
In early March, Central Bank of Iran (CB) announced its plan of launching a regulated forex market to keep the prices in the foreign currencies exchange market down.
At the time, the CBI governor Abdolnaser Hemmati reported of a new measure to further bring down the prices in the exchange market, in the form of the organized market, which according to him, was a mixture of the formal market and the free market.
Some, however, translated the CBI’s plan to launch the organized market as a preparatory step for omitting Iran’s domestic Foreign Exchange Management Integrated System (locally known as NIMA), where the forex rates stood somewhere in between those of the free and official market.
On Saturday, Hemmati announced that the central bank has no intention to omit NIMA from domestic forex trade market.
Calling NIMA the pivot of domestic forex transactions, Hemmati underlined that the system will not be crossed out under any circumstances.
“The news about eliminating NIMA is not true while domestic exporters are required to inject up to 50-60 percent of exports revenues to the country via NIMA,” Hemmati said.
As previously announced, CBI has also unveiled a decree containing a list of new incentives for the country’s exporters that re-inject their earned foreign currency to NIMA. Based on the announcement, those exporters who return more than 60 percent of their earned currency to the country’s economic cycle in accordance with previous decrees, in addition to the listed incentives, they will become CBI’s priority for allocation and supply of foreign exchange [in case they need it].