Iran Planning to Lever Financial Assets Held Abroad to Balance Own Currency Rate

Sputnik International

MOSCOW (Sputnik) – The Iranian government has unveiled plans to use foreign currency reserve assets abroad for balancing domestic exchange rates, which have experienced extreme volatility over the past week, President Hassan Rouhani said on Wednesday.

“We are trying to use the currency we hold in other countries as reserves, as good measures have been taken in recent days with at least three countries”, Rouhani said at a cabinet meeting, as quoted by Iran’s Tasnim news agency.

The Iranian president pointed, in particular, to Russia and China, saying that the political ties with these countries “have improved in recent weeks” and adding that he sent a message to Russian President Vladimir Putin with a call for “closer regional relations,” delivered earlier this week by Iranian Foreign Minister Javad Zarif during his visit to Moscow.

Rouhani also cited the recent visit of Iraqi Prime Minister Mustafa al-Kadhimi to Tehran, saying that it brought about “good agreements” on economic and banking cooperation, customs and trade.

“We hope to continue cooperation with the neighbours and friends, including Russia, Iraq, Pakistan, Qatar and Afghanistan”, Rouhani added, as quoted in the report.

As part of the measure, Iran’s Central Bank has reportedly urged Iranian exporters to repatriate the money held abroad, all to balance out the currency rates.

Iran’s currency, the rial, hit an all-time low of 260,000 against the US dollar on Sunday. The Iranian Central Bank responded by injecting $300 million into the market, but its impact on the devaluation of the rial was insignificant.

Source link

Leave a comment