Tehran, Iran, May 19
By Kamyar Eghbalnejad - Trend:
Offering gold coin to individuals, who already registered by the Central bank of Iran has led to a decline in demand, Mohammad Keshtiara, head of National Union of Iranian Jewelry and Gold, said.
“Over a month about one million registered coins were received by the people, and the supply of coin to registered people by the central bank reduced demand in the market," Keshtiara told Trend May 19.
"I think that this supply will lead to production stagnation because the investment is made in a factor that does not have any economic return and capital is being held in homes,” he added.
However, he said, this measure has a positive aspect as well, which is management and control of the market by the central bank.
Commenting on the gold market situation, Keshtiara said that two factors have already led to a decline in gold prices.
“First factor, a decline of about $40 in the global markets, and the second one is offering gold coin by the central bank via registration system, he said.
He also touched upon the issue of unified currency exchange rate, saying that “single exchange rate has always been one of the ideals of the country's economy, which can help stabilize trade and prevent price increases, which I hope will continue.”
In April the Iranian government decided to unify the country’s official and open market exchange rates.
The decision was made following fluctuations in the country after the rial declined to an all-time low.
Following that the government put the price of the US dollar at 42,000 rials in both markets, and for all business activities.
The CBI also banned offering foreign currencies in exchange shops across the country.
The administration also imposed a 10,000-euro ($12,400) ceiling on the amount of foreign currency that citizens can hold outside banks.
