President: Gov’t currency policy aimed at decreasing people’s concerns
President Hassan Rouhani described a recent currency policy adopted by the government as an important step for decreasing the concerns of the people, producers and businessmen.
The government’s decision came after Iran’s currency, the rial, lost some 29 percent against the US dollar in about two weeks.
Speaking at a meeting of the government’s economic taskforce for managing the currency market on Wednesday, Rouhani stressed that under the policy, the price of basic goods and medicine would not increase, and the government has made all the necessary precautions for supporting these goods to avoid an increase in prices, the president’s official website reported.
On Monday night the government stepped in, removing the discrepancy between the exchange rate used by traders – 60,000 rials to the dollar – and the official gov’t rate – previously 37,000.
The new single rate has been set at 42,000 rials to the dollar.
The president also described the successful implementation of the policy as an essential national issue and called on all branches and organs to fully cooperate with the government.
He also described transparency as the government’s main policy, saying, “Transparency blocks the base of corruption; this policy is a move towards creating transparency in the currency market.
Following an emergency meeting of the government’s economic taskforce, headed by President Rouhani on Monday, First Vice President Es’haq Jahangiri said that as of Tuesday the price of the dollar would be 42,000 rials in both markets, and for all manner of activities.
“Anyone trading at any other rate will be considered a racketeer,” Jahangiri added.
On Sunday, Iran’s national currency, the rial, plunged above six percent against the US dollar in the free market.
Commercial bankers previously linked the rial’s slide partly to seasonal demand for US dollars, which rises around the end of the Persian year (March 21) when many Iranians travel abroad.
However, some now believe that US President Donald Trump’s hostile rhetoric, including his recent threat to scrap a landmark nuclear deal with Iran, has been effective in the deterioration of the rial’s depreciation.