Forex market shock temporary: Rouhani

Iranian President Hassan Rouhani says the return of foreign currency incomes will balance the foreign exchange market. The rial has hit rock bottom in the past month, collapsing even below the 190,000 rate it fell to in the wake of the US decision in 2018 to withdraw from the Iran nuclear deal and reimpose sanctions.

24 June 2020
ID : 22445
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Iranian President Hassan Rouhani says the return of foreign currency incomes will balance the foreign exchange market. The rial has hit rock bottom in the past month, collapsing even below the 190,000 rate it fell to in the wake of the US decision in 2018 to withdraw from the Iran nuclear deal and reimpose sanctions.

A man is looking at foreign currency prices at a currency exchange shop in Ferdowsi Street in central Tehran. Photo: AFP

Iranian President Hassan Rouhani says the return of foreign currency incomes will balance the foreign exchange market.

"The shock created in the foreign exchange market is temporary and has no fundamental economic reason," Rouhani said on Tuesday at the 46th session of the government's economic coordination board.

The Iranian rial plunged to new depths against the US dollar on Wednesday in what economists said was a slump partly induced by the Middle East's deadliest coronavirus outbreak.

At Tehran's foreign exchange hub on Ferdowsi Street, the currency was being traded at around 195,800 to the dollar at midday.

The rial has hit rock bottom in the past month, collapsing even below the 190,000 rate it fell to in the wake of the US decision in 2018 to withdraw from the Iran nuclear deal and reimpose sanctions.

"The government is planning to direct liquidity towards production which is the pillar of a productive economy,” the president said adding that a coherent policy which includes boosting the stock market is currently underway.

"Selling bonds to people in a completely economical way, and more importantly, selling government's property and lands to build housing is another measure taken by the government for sustainable change in the economy so that it can turn the country's liquidity into a productive and sustainable economy," he added.

"The formation of the Real Estate Exchange is one of the measures that will encourage and support large-scale investment and housing production through the supply of land and the necessary financial facilities," Rouhani noted.

He went on to say: "The government is seriously pursuing its monetary policies, including controlling liquidity and inflation, as well as managing financial markets, particularly currency prices."

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