Iranian MP explains reasons for drop of foreign currency

By  Trend

The weakness of US psychological war alongside strict rules of the Central Bank of Iran, including the establishment of secondary market and Integrated System for Hard Currency Transactions, has led to drop of foreign currency rate in Iran, MP Zahra Saeedi told Trend.

"The current stability in the market is due to logical decisions made in this sector, that would hopefully last. However, there were other reasons, not related to domestic issues, that have led to the US rate rise in Iran," she said.

"For example, Donald Trump tried to rock the foreign currency market by creating the theory of 'Iranophobia', that turned out to be partly successful. The psychological war had its effect, but thanks to the Central Bank of Iran and its governor, the plan wasn't overall successful," Saeedi said.

Other reasons for stabilization of the foreign currency rate is the oil dollar injection into the market, the establishment of the secondary market, and systems to control the foreign currency rate - those were the other successful solutions that helped, she explained.

"On the other hand, some people, who kept a lot of US dollars at home, weren't willing to bring that money into the market. However, when the psychological atmosphere calmed down, they came out, dropped their US dollars in the market, and this had a remarkable effect on the foreign currency rate," said Saeedi.

"Supervision is important in any field, it can help avoid possible fraud," she said. "The government gave authority to the CBI to create stability. I believe the correct management in recent months should continue, to reduce the foreign currency rate further", she added.