News ID: 261580
Published: 0326 GMT November 14, 2019

Iran chief banker warns against speculative trade of currencies as rial weakens

Iran chief banker warns against speculative trade of currencies as rial weakens

The governor of the Central Bank of Iran (CBI) has warned the households against engaging in fresh round of speculative trade of foreign currencies, saying a slight weakening of Iran’s rial was nothing to worry about.

Abdolnasser Hemmati said on Thursday that “nothing special” had happened with regard to the major economic indicators that could justify the lower price of the rial against the US dollar and other currencies in recent days, reported.

Rial was trading at 118,400 against the dollar on Thursday, down 2.6 percent from the previous day and 6.7 percent weaker than prices recorded in late September.

Hemmati, posting a social media statement on his popular Instagram page, said that speculators were trying to benefit from domestic and international political developments, especially the sanctions imposed by the United States, to recoup losses suffered during the past months, when rial managed to regain some of the value it had lost.

Rial started its weakening trend against major currencies early last year when the United States prepared to impose a series of sanctions on Iran after leaving an international agreement on the country’s nuclear program.

The rial went through historic ebbs of 190,000 against the dollar in September 2018 but it stabilized on 110,000 a year later as the government adopted a series of policies to diversify the economy and increase non-oil exports that could increase its access to foreign currency income.

The greenback has already lost its appeal as a tool to protect household savings as many have turned to much safer markets, including shares and bonds, to invest their money.

“I reiterate again that currency is not a proper method of investment and has its own serious risks,” read part of the post by CBI chief.

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