Forex and bullion rates in the center will be the function of demand and supply mechanism plus key economic indicators, the CBI boss has said.
The Central Bank of Iran officially unveiled the Currency and Gold Trade Center apparently in the latest bid to control forex and gold prices that have jumped to levels unseen in the history of the country.
Mohammad Reza Farzin, the CBI governor, said, "Rates in this center will be the reference rates in the market based on demand and supply of currency and gold, as well as key economic indicators," the CBI website reported on Monday.
"The aim is to set up a place where supply and demand interact at a reasonable price," Farzin said without elaboration.
The new center will also have a floor for remittances, where export companies can sell their revenues in the form of hawala. The regulator was to launch the center earlier in the month but it was delayed because of “some technical issues.”