Iranian Gov’t Seeking to End Dual-Exchange Rate
TEHRAN (Tasnim) – The Iranian government plans to unify the existing two rial-to-dollar exchange rates in an attempt to attract more foreign investment in the country following the removal of anti-Tehran sanctions.
Iran allowed commercial lenders this month to buy foreign currencies using rial rates set by the market rather than those dictated by the central bank.
Akbar Komijani, a deputy governor of the Central Bank of Iran (CBI), said the regulator will be “responsible for this market and will guide it,” according to a report by Bloomberg on Sunday.
It is widely believed that the move will lead to more cash entering the banking system rather than circulating through exchange houses.
Iranian President Hassan Rouhani last month underscored the need for Iran to move toward unification.
Later, CBI Chief Valiollah Seif, who had announced plans to adopt a single rate within months following the implementation of a lasting nuclear deal between Tehran and six world powers, said the policy would be in place before the end of the Iranian year in March 2017.
Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) reached the agreement on July 14, 2015 and started implementing it on January 16.
