Economic review

Iran adopts new policy to protect local currency value

2018-08-06 17:06:10 (Beijing Time)         English.news.cn

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TEHRAN, Aug. 6 (Xinhua) -- Iran's Central Bank (CBI) on Monday unveiled a new policy to protect value of rial against foreign currency.

The policy includes the lift of ban on currency trade and the activity of official money exchange markets ordered by new governor of the CBI Abdolnasser Hemati, Tasnim news agency reported.

Hemati said the policy, endorsed by President Hassan Rouhani's administration, aims to control the currency market and allow economic activists to interact freely.

Meanwhile, the administration will continue to allocate subsidy on basic commodities and medicine in order to fix consumer prices, said Hemati.

The foreign currency from the export of Iranian goods could be funneled to the local market, the CBI chief said, adding that the free market itself will determine the value of currency.

Reopening of the money exchange markets and lifting the ban on foreign currency trade would also push down the price of gold coin, which has rocketed up in recent weeks, he said.

Iran's currency market was in turbulent recently as it experienced an unprecedented hike in the value of foreign currencies. The Iranian money plunged to a record low against the U.S. dollar last week with rial losing half of its value in only a few months.

Foreign currency values began to rise in Iran after the U.S. withdrew from the Iran nuclear deal in May and announced plans for a fresh wave of sanctions against the Islamic Republic.

Demand grew among the people for foreign currencies or gold coins for fear of further plunge in the value of their assets.