Euro to replace US dollar in trade transactions: CBI governor
The decision to replace the US dollar with euro in foreign trade transactions will be implemented with greater determination this year, said the governor of the Central Bank of Iran (CBI).
Valiollah Seif was speaking at the open session at the Parliament which discussed the recent fluctuations in foreign exchange rates, Mehr News Agency reported.
The rial plummeted to a record low of 60,000 against the US dollar in the unregulated market on Monday, compared with about 48,000 on April 1.
Seif blamed lack of confidence in the future and the adversaries of the Islamic Republic for the instability in the forex exchange market.
“There are signs of plots by neighboring countries,” he said. “Some plans are at hand to upset Iran’s forex exchange market. We need to keep calm and disappoint the enemies [from achieving their objectives].” Seif added that the government will sell the US dollar at 42,000 rials to all individuals and businesses.
Noting that the rate is reasonable and meets economic indicators, he added that there will be five to six percent fluctuation in the rate during a year, which will be in accordance with economic variables.
All revenues from oil or non-oil transactions, as well as any forex income will be put into a new system that will soon come on stream.
Seif maintained that the plan to replace the US dollar with euro in trade will be followed more vigorously this year, since “the dollar has no place in our transactions today”.
He added that the Leader Ayatollah Seyyed Ali Khamenei has welcomed the decision.