News ID: 232020
Published: 0355 GMT September 29, 2018

CBI permitted to defend rial in forex market

CBI permitted to defend rial in forex market

Iran on Saturday authorized the Central Bank of Iran (CBI) to intervene in the foreign exchange market in defense of the rial, state television reported.

According to Reuters, a top government body, headed by President Hassan Rouhani and the heads of parliament and the judiciary "gave the CBI governor the necessary authority to intervene in the foreign exchange market and to manage it", state TV reported.

"The central bank will intervene in the foreign exchange market through banks and authorized exchange dealers and carry out necessary measures to control the exchange rate of hard currencies," the television quoted the body as saying.

On Saturday, the first trading day of the week, the rial recouped some its losses to be traded at around 173,000-178,500 per dollar, according to foreign exchange websites 2gheroon.ir and bonbast.com, which track the unofficial market.

The official exchange rate is 42,000 rials per dollar and is used mostly for imports of state subsidized basic goods such as food and medicine.

The top government body also gave final approval to a move allowing money exchange shops to import foreign currency banknotes, and requiring non-oil exporters to repatriate their hard cash earnings within three months to be reinvested or sold in a regulated secondary market to importers.

Officials have said Iran was moving to ease regulations on imports of hard currency bills and gold by exchange shops, after Washington in August reimposed sanctions on Iran’s purchases of dollars, its trade in gold and precious metals and its dealings with metals, coal and some software.

   
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