Iran’s chief banker says stability will return to Iran forex market soon

Press TV – The governor of the Central Bank of Iran (CBI) says prices of foreign currencies will return to normal levels in a very near future despite growing speculations that have affected the markets over the past days.

Abdolnasser Hemmati said on Monday that prices in the forex market had surged over the past days mainly because of a recent government decision to increase the price of fuel and rumors that Iran would have problems funding a budget announced for the next Persian calendar year starting in late March.

“We do not treat the issue of currency rate and its fluctuations with hysteria,” said Hemmati, adding, “We will bring stability back to the forex market.”

The CBI chief said certain people were benefitting from creating a bubble in the prices of foreign currencies.

“Based on our information, networks outside of the country are also working to increase the currency price,” said Hemmati, without elaborating.

Reports from unofficial currency market in downtown Tehran on Monday showed that prices had surged by nearly 25 percent compared to late November.

Iran’s rial closed at 138,000 against the US dollar on Monday, the lowest on record for the national currency since early summer.

Hemmati said various factors had played a role in rial’s devaluation in recent days, including a continued unrest in neighboring Iraq which had significantly affected Iran’s exports to the Arab country.

He said demand for hard currency had also increased in December mainly because Iranian companies were clearing debts owed to foreigners in days leading to the Christmas.

The chief banker said government’s announcement of an annual budget bill on Monday had also fueled speculations in the market that Iran would face financial difficulties next year mainly because of the American sanctions imposed on the country.