Increasing in foreign currency prices at the free market, with the US$ as a base, has resulted in turbulances at the other mercantile markets including polymers. This sharp rise has made consumers nervous and in between, the polymer converting industries, are suffering anxiety. At the same time, the Government is trying to control the market but it seems that so far it has been out of the control by US$ going up by about 400 Rilas in a day reaching to Rilas 40.450 per US$. To try to make the market calm, the head of the Central Bank of Iran issued and statement. Please read it next:
? foreign exchange market
The volatility and uncertainty in the foreign exchange market has a negative impact on macroeconomic variables, and therefore, the stability of this market is one of the main goals of the central bank. After the momentum and severe exchange rate eruption of 2011 and 2012, the Central Bank in the eleventh government began to stabilize the currency market and in practice showed that it has the ability to maintain the stability of the foreign exchange market and it is now also. At that time, the central bank’s approach was that, firstly, the market mechanism and the supply and demand of the currency would not be disturbed. Secondly, it regulates foreign exchange policies, processes and fluctuations in exchange rates, and avoids severe fluctuations, so that the economy does not fluctuate. In this regard, the addition of the mutations of 2011 and 2012 naturally grew and stabilized during the eleventh government and until the early 12th government in the digestive market and the foreign exchange market. In the long run, in line with the impressive government revenue gains, efforts were made to adjust the foreign exchange market, in line with changing fundamental factors affecting the market.
It should be noted that the foreign exchange market is affected by various factors such as macroeconomic policies, the process of fundamental and macroeconomic changes, developments in international political and economic relations, changes in the world currency exchange rates and expectations. Meanwhile, the exchange rate has different and unbalanced effects on economic variables such as exports, imports, investments, production, consumption and inflation. The central bank’s approach is based on pursuing an equilibrium exchange rate policy as an exchange rate policymaker to ensure that the country’s economic benefits are maximized consistently with the strengths of the economy.
The Central Bank is currently monitoring the trend of the exchange rate, which is affected by some of the seasonal factors and the expectations of international relations, as it has done in the fall of last year, as well as the continuation of the stabilization of the market and the elimination of disruptions. In the end, the vector of the rate of return on domestic property markets is such that the real interest rate of the banking system is positively positive and more attractive than the risk-bearing foreign exchange market returns. This makes the finances of the compatriots, while enjoying the proper and risk-free returns in the banking system, only to support the production and employment of the country, and the foreign exchange market, in spite of the efforts of the currency speculator to fluctuate and exploit the margin of short-term profits, can over time Continue to keep its stability consistent with developments in economic variables.
? @valiollahseif
#central bank
#this government
#Currency market
