Jan 25, 2021 06:38 UTC
  • Iran to continue cash injections to stabilize forex market: Chief banker

The Central Bank of Iran (CBI) has injected nearly $1 billion into a secondary exchange market in the country as it seeks to stabilize foreign currency prices amid hopes that higher crude sales and better exports could boost the country’s access to hard currency.

According to Press TV, CBI Governor Abdolnasser Hemmati said on Sunday that the bank’s cash injections into the NIMA market, where exporters and importers trade hard currency, had exceeded $150 million per day since the move began a week ago.

Hemmati admitted, however, that the injections have had a mild impact on currency prices because importers anticipate lower prices for the US dollar against the rial.

The greenback sold for 235,000 against the rial on Sunday, up slightly from prices seen last week when the rial began to strengthen against foreign currencies after a change of government in the US.

Traders have speculated that the rial would further rebound against the dollar in the upcoming months mainly on the expectation that Washington would seek to ease some of its sanctions on Tehran’s sale of crude.

Authorities say forex prices will stabilize if the CBI gains access to funds that have been blocked in other countries because of US sanctions.

Hemmati said that Iran’s crude and non-crude exports had surged to record levels, allowing the CBI to carry out more injections into the market to further balance the forex prices.