Baku, Azerbaijan, Aug. 31
By Farhad Daneshvar – Trend:
Although Iranian financial policymakers back in 2016 announced that plans for unifying the country's official and open market exchange rates were moving ahead, the issue of parallel exchange rates has remained in place.
Many people suggest that multiple exchange rate regime brings serious issues like fueling corruption and throwing the economy off the course.
The critics of the multiple exchange rate regime claim that those with ready access to the official rate benefit from relatively inexpensive greenback but ordinary individuals have to pay a higher price to obtain the foreign currency on the open market.
The problem of multiple exchange rate now, not only remains in place, but even rumors are flying around the possibility of the devaluation of the national currency.
Hamdi Mirmomeni, an Iranian market expert, commenting on the issue cited the recent remarks by MP Hassan Hosseini-Shahroudi and said that considering the existing obstacles it appears impossible to unify Iran’s official and open market exchange rates in the near future.
“President Hassan Rouhani’s government, in order to lead the country out of recession may ease the government control on the rate of US dollar against Iranian national currency,” Hamdi Mirmomeni, told Trend.
Saying that the existing pressures have left a negative impact on the efforts made by the government aimed at fixing the economy, he added that the government in order to deal with the economic recession may decide to turn a blind eye on the inflation rate and the rate of US dollar against Iranian rial.
The country has apparently failed to create the required infrastructure for unifying the currency rate at the capital and money markets as well as its foreign trade system.
Shortcomings regarding the implementation of Iran’s nuclear deal also appear to remain as a major obstacle on the path of unifying the currency rate.
Iran apparently suffers from the shortage of foreign currency resources and on the other hand, given the country’s disputed ties with the US, the Islamic Republic’s oil exports face a possible risk of new embargos.
Considering the above mentioned risks, the Iranian decision makers obviously look reluctant to risk supplying an unlimited amount of greenback in the country.
