Economic, political climate will govern forex market stability

Financial Tribune – Except for brief volatility in the first weeks of the new fiscal year (started March 2019), the currency market has seen relatively stability throughout the year.

The Central Bank of Iran on several occasions has taken the credit for maintaining the stability by what it says is through balancing demand and supply.

Despite escalation of tensions following the re-imposition of hostile US economic sanctions and the ensuing economic pressures, the CBI has so far managed to keep the market calm by directly participating in the forex market through its affiliate moneychangers.

Maintaining the stability in the second of half of the year is contingent upon de-escalation of political tensions and taking appropriate measures to meet the budgetary constraints on the part of the government, according to Ferial Mostofi, head of the Investment Commission at Iran Chamber of Commerce, Industries, Mines and Agriculture.