Central Bank of Iran Chief: Hard Currency Inflow Gathering Pace

EghtesadOnline: Governor of the Central Bank of Iran used Instagram on Sunday to announce that forex earnings and transfer to the country has gained momentum.

News ID: ۷۴۶۴۸۱

14 January 2019

Abdolnasser Hemmati said US hostility and spite against Iran and its unending attempts to corner Iran politically and economically would fail as in the past.

"Acceleration of currency earnings from India, South Korea and China, the decision to boost trade with Turkey, Iraq and other neighbors, suitable foreign exchange reserves and CBI's effective presence in the currency market will again neutralize the US government's ploys to undermine the forex market," Hemmati wrote on Instagram.

Following a brief surge in forex rates on Saturday the CBI sought to assure the public in a statement, saying it has been able to restore relative stability to the forex and monetary markets, Financial Tribune reported.

The USD exchange rate rose above the resistance level of 110,000 rials on Saturday (the first trading day of the week) reaching close to 113,000 rials.

After another surge early Sunday, which saw the greenback trade close to 120,000 rials, it dropped to 114,000 in the afternoon, according to Sanarate.ir–a website that reports the average exchange rates from across money exchange shops.

By going against the grain, CBI-affiliated exchange shops kept their selling rate above other currency exchange houses to prevent the usual arbitrage that led to abnormal high demand for foreign currency in the recent past.

India has begun paying Iran for oil in rupees the first such payments since the United States re-sanctioned Tehran in November.

Washington gave a six-month waiver to eight countries, including India, allowing them to import some Iranian oil.

No More Waivers

The US special representative for Iran said Saturday that the US will not grant more waivers to importers of Iranian oil.

“We are not looking to grant any waivers or exemptions to the import of Iranian crude,” Brian Hook told a conference in Abu Dhabi.

Foreign Minister Javad Zarif said last week Iran is working on payment mechanisms, including barter with trading partners like India, China and Russia, following a delay in the setting up of a European Union-led special purpose vehicle to facilitate trade with Tehran.

China’s Bank of Kunlun officially resumed its transactions with Iran after a one-month pause in December. But the bank's scope of work fell short of what Iranian businesses had hoped for as the bank hews strictly to the US sanctions regime.

Hemmati alluded to recent developments vis-à-vis the US pressure campaign and wrote that an international campaign against Iran "in the weakest European country" and US claims not to extend Iran's oil waivers despite previous setbacks in zeroing Iran oil exports were indeed signs that "Americans have given up hope that their measures will have any effect on Iran."

The Foreign Ministry in Tehran on Sunday summoned Poland's charge d'affaires, Wojciech Unolt to protest  an "anti-Iranian conference" that Warsaw will be hosting.

Poland and the US are jointly organizing a global conference in Warsaw on February 13-14 that will focus on Iran's influence in the region, according to US secretary of state, Mike Pompeo.

Highlight: By going against the grain, CBI-affiliated exchange shops kept their selling rate above other currency exchange houses on Sunday to prevent the  arbitrage that led to abnormal high demand for foreign currency in the recent past