Iran opens secondary forex market to ease dollar shortage

Iran launched a secondary market for foreign exchange to ease a dollar shortage.

The market, designed for importers of non-essential goods, started operating on Tuesday, Bloomberg reported.

The initiative was announced by the Central Bank of Iran last month to provide foreign currency to importers, who can’t access the central bank’s preferential rate of 42,000 rials, which is available to energy-related businesses and traders in other essential goods.

It is also meant to discourage exporters from selling dollars on the black market, and to create a mechanism to avert dramatic rate fluctuations.

Authorities expect the new market will push unlicensed traders to bring their dollars to market, for fear the secondary exchange’s activities will lower prices.