Central Bank of Iran Sees Rial in Stronger Position

EghtesadOnline: The national currency is 40% stronger than the last fiscal year (ended March 20), says Abdolnasser Hemmati, governor of the Central Bank of Iran.

News ID: ۷۴۸۶۱۶

05 October 2019

He made the statement in a note posted on his personal Instagram account on Tuesday, adding that in the past 12 months inflation too has been kept in check, thanks to the rial regaining strength.

He singled out the belligerent US government and its junior allies for waging economic war against Iran, and abusing social media to spread economic chaos.

"CBI measures, in close cooperation with other organizations, have helped in facing the US sanctions visibly aimed at undermining Iran's financial health.  We managed to restore stability to the currency and other markets," Financial Tribune quoted the senior banker as saying.

He referred to the burden of economic problems on the people’s shoulders, saying, "enhancing living conditions of the people is what makes me and my colleagues (more) determined to do our best."

The rial fell more than 60% in unprecedented market fluctuations during April-September 2018, spurred by threats of new US economic sanctions and dim prospects for currency reserves as oil revenues took a drubbing unseen in recent decades.

The currency crisis began in the spring of last year after US President Donald Trump’s decision in May to pull out of the landmark nuclear deal Iran had signed with the six world powers.

Trump soon imposed the tough restrictions and said he would use “maximum pressure” to force Tehran back to the negotiating table.

The market witnessed a sharp change of course in early autumn 2018 when the USD fell from 180,000 rials in late September to 100,000 rials in October.

In recent months and following the CBI's intervention in the forex market, the rial has regained part of its value.

Tehran Gold and Jewelry Union's data indicates nearly 16% drop in the average price of euro in the open market in the past six months, whereas the rate has increased at a steady pace in the secondary market. The US dollar declined 11% during the same period.

The greenback was worth 114,500 rials in Tehran on Wednesday.