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blueskyline

The US Dollar exchange rate is expected to drop after New Years Eve . The Central Bank of Iran's head of export department

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Thanks Screwball .....

The US dollar exchange rate is expected to drop after the New Year Eve, the Central Bank of Iran’s head of Exports Department.

The currency registered a big recent rally in Tehran market, reaching an all-time high against the rial on Wednesday.

“The recent surge in dollar’s exchange rate is mainly caused by growth in demand and shortage of the currency in the market. Demand will decrease after the turn of New Year,” IRNA quoted Samad Karimi as saying on Thursday.

The official warned the public to refrain from exchanging their assets for foreign currency and dabbling in speculative activities.

The US dollar broke the 40,000-rial threshold in Tehran's market on Wednesday, recording an all-time high for the currency. It was sold for 40,200 rials at the close of trade on Wednesday, according to the website of the Association of Bureaux de Change Operators of Iran.

The greenback was slightly down on Thursday and exchanged for 40,150 rials at the close of the day.

Earlier, the central bank had repeatedly announced that the forex rally is temporary and will abate by the end of the current fiscal year (March 20), rejecting claims that the government is in favor of increasing forex rates to make up for its budget deficit.

“The CBI is prepared to control rates in the market during the final months of the Iranian fiscal year, by using revenues from non-oil exports,” Karimi said.

According to the secretary-general of the Association of Petrochemical Industry Corporations, petrochemical companies have reached an agreement with CBI to inject currency into the market in an orderly weekly basis.

At the same time, Karimi admitted that speculation, forex futures deals and smuggling of foreign currencies are making it difficult for CBI to regulate the market.

The central bank has been taking measures to limit unhealthy operations in the forex market, including a crackdown on unauthorized moneychangers and allowing banks to conduct forex operations in the open market......https://financialtribune.com/articles/economy-business-and-markets/56037/cbi-expects-forex-rate-to-drop-on-jan-1...I

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Thanks Screwball ............

                           

The Central Bank of Iran, in a statement on Saturday, informed businesses to approach the banking system for purchasing foreign exchange.  

“Back in July, the banking system was authorized to trade in foreign currencies at the open market rate and lenders are currently prepared to meet the foreign exchange needs of businesses,” reads the statement published on CBI's website.

The statement comes in the wake of the recent US dollar rally in Tehran market, which the CBI insists is mostly fueled by market speculations, the website of the Association of Bureaux de Change Operators of Iran said.

The US dollar broke the 40,000-rial threshold in Tehran's market on Wednesday, recording an all-time high. It was sold for 40,200 rials at the close of trade on Wednesday

The greenback changed hands at 40,500 rials late Saturday.

The central bank has also announced that the forex rally is transitory  and will be over by the end of the current fiscal year (March 20), rejecting claims that the government is in favor of increasing forex rates to make up for its budget deficit.

((((((((((CBI also expects an immediate drop in the US dollar's exchange rate after the New Year’s Eve.))))))))))))

According to the statement, the central bank will provide the banking system with hard currency to meet the importers’ need.

CBI will also continue to offer foreign currencies at the official subsidized rates, a move condemned by the private-sector activists as harming production and giving rise to rent-seeking.

Back in July, CBI allowed commercial banks for the first time to trade in the parallel foreign exchange market, as part of the initiative to scrap the dual exchange rates and move toward a floating currency regime.  

According to the CBI statement, banks in recent weeks have been authorized to offer more services in foreign currencies.......https://financialtribune.com/articles/economy-business-and-markets/56127/businesses-told-to-buy-foreign-currency-from-banks

Edited by blueskyline
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Thanks once again Screwball.........

The greenback's rate reached 41,000 rials on Sunday, recording a new all-time high.

Subsequently, Governor of Central Bank of Iran Valiollah Seif said banks should reclaim their “historic and fundamental” role in the foreign exchange market.

Seif made the statement in a meeting with bank executives, as the greenback continues its nonstop rally in Tehran's market.

“Once banks expand their forex operations, moneychangers will go back to their own legally defined business and this would enhance the health and security of foreign trade,” CBI's website quoted Seif as saying on Sunday.

“No considerable measure has been taken by banks yet, even though new regulations give banks more space for offering forex services. Lenders cannot guarantee their profitability only by relying on transaction fees. They need to offer a wide range of services.”

In a statement on Saturday, CBI informed businesses to approach the banking system for purchasing foreign exchange, noting that banks have been permitted to trade foreign currencies at the market rate since July.

The move was aimed at helping the central bank implement its plans for unification of foreign exchange rates by the end of the Iranian fiscal year.

But the new call comes after continued growth in the US dollar's exchange rate against the rial in recent weeks.

The currency registered a significant growth in the past 30 days, compared with November 26 when it was sold for 37,660 rials.

The central bank has announced that the forex rally is transitory  and will be over by the end of the current fiscal year (March 20), rejecting claims that the government is in favor of increasing forex rates to make up for its budget deficit.

(((((((((((CBI also expects an immediate drop in the US dollar's exchange rate after the New Year’s Eve.)))))))))))...https://financialtribune.com/articles/economy-business-and-markets/56206/greenback-reaches-41000-rials.........These are 3 seperate artcles speaking of some sort of rate USD drop after New Years Eve. It might be a very small adjustment . But the fact that they spoke of a drop on NYE 3 different times . I find very interesting .

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Thanks Screw ball........

 

                                        

The unification of Iran's dual foreign exchange regime and the decline in the exchange rate of major currencies were among the most important topics discussed at Saturday's meeting between top economic officials and senior lawmakers, as rial continues to gain against the US dollar, announced the chairman of Majlis Economic Commission.

"It was decreed [during the parliamentary meeting] that foreign exchange rates be unified over the long term and the government use the instruments necessary to decrease currency rates in the short term," Mohammad Reza Pour-Ebrahimi told Fars News Agency.

The official was speaking after a meeting attended by members of the commission, Economy Minister Ali Tayyebnia and Central Bank of Iran Governor Valiollah Seif on Saturday.

The exchange rate of the US dollar had crossed 40,000 rials last week but started showing signs of abating as of Wednesday. The greenback was quoted at 39,500 rials in the free market on Saturday.

The below 40,000-rial rate for $1 would be a major relief for the heated forex market, after it experienced one of its biggest upheavals in recent time.

The meeting was held to discuss these upheavals in the forex market.

A member of the commission, who was present at the meeting, quoted Seif as saying that a substantial amount of foreign currency was injected into the market by CBI to reverse rial's weakening against the greenback.  

"Seif referred to injecting $5.8 billion into the unofficial market as one of the efforts to manage the market, because of which the exchange rate of the dollar [against rial] has decreased," Seyyed Hassan Hosseini Shahroudi also said in a talk with Tasnim News Agency.

According to Shahroudi, the entry of banking system in foreign exchange trading at the free market rate has also contributed to rial's rise against the dollar.

Last week, CBI informed businesses to approach the banking system for purchasing foreign currency, noting that banks have been permitted to exchange foreign currencies at the market rate since July.

Single Forex Rate Still in Sight

The central bank governor also spoke to reporters after the meeting, stating that rate unification is necessary for the economy.

"Things have been said on my behalf, but what I actually said was that there needs to be a fulfillment of prerequisites to achieve a full unification of forex rates," he said.

"One of these prerequisites is suitable [international] banking ties to engage in international transactions."

Iran operates two exchange rates—a free market rate and an official rate used for state transactions—set by the central bank at around 32,375 rials on Saturday.

In recent months, the central bank has raised the official rate gradually to reduce the gap between the two. It wants to unify the exchange rate, make the economy more efficient and create a level playing field for private firms competing with state institutions with access to cheaper foreign exchange.

The CBI governor added that compared to when Iran's nuclear accord with world powers was first signed in June last year, the country has moved forward and positive results have been achieved, which have partially paved the way for adopting a single exchange rate.

Seif reassured that the matter "will be followed up", reports ICANA.

On the state of currency market, the official reiterated that the recent rise in forex rates has been a result of seasonal demand "which had peaked", but is now moving on a downward trend and will continue to do so.

Seif said the central bank prefers to avoid talking about currency rates as much as possible to make currency speculators incur losses, predicting that this is exactly what will happen.

"The current forex rates in the market are not real and economic variables show circumstances that will lead to a declining trend of [exchange] rates," he said.

He also elaborated on the central bank's recent announcement that it will hand a list of people who traded large amounts of foreign exchange in recent weeks to Iran National Tax Administration for further investigation.

Seif noted that the tax administration can now legally obtain information from the central bank to monitor bank accounts involved in large-scale currency trading.

As of now, any account with a high volume of forex transactions will be scrutinized to check whether or not they have submitted their tax returns.

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