CBI sees stable currency market after turbulent year

Tehran Times – Governor of Central Bank of Iran (CBI) said the currency market is moving toward stability and predictability after a year of turmoil, IRNA reported.

“The currency market is gradually moving towards stability and predictability after a difficult period which was the result of sanctions and the negative expectations they brought about,” Abdolnaser Hemmati tweeted in Farsi on Friday.

The official further noted that over the past year CBI’s efforts have been focused primarily on market management and regulation.

In recent months, the value of Iranian rial has been recovering against the U.S. dollar as the CBI policies for shielding the currency against the U.S. sanctions took effect.

The central bank sought ways to protect the currency with measures that include setting up a government-run foreign-exchange platform known as NIMA to quell the black market and controlling interest rates offered by lenders.

The advance in rial value has been a relief for Iranians who watched the currency plummet more than 50 percent after U.S. President Donald Trump scrapped the 2015 nuclear accord and reimposed sanctions on the nation.

According to Hemmati, the rial on the open market is now close to the Nima rate.

In early May, Hemmati outlined CBI plans for neutralizing or relieving the impact of U.S. sanctions on the country’s economy and mentioned providing liquidity and working capital to maintain and boost domestic production as one of those plans.