Iran’s government decided to finally put an end to the dual foreign exchange regime, in an attempt to control the bullish foreign exchange and gold markets and promote safety of foreign investments.

The decision was made during an emergency meeting presided by President Hassan Rouhani on late Monday after the US dollar and almost all other foreign currencies hit new record highs against the rial in Tehran’s market.

According to Vice President Es’haq Jahangiri who addressed the nation, the US dollar will be offered only at the unified rate of 42,000 rials to everyone as of Tuesday morning and anyone engaging in dealings with any other rate will be violating the law and committing an act of smuggling.

Iran has been operating two exchange rates: a free market rate and an official exchange rate which was set by the Central Bank of Iran on a daily basis and used for state transactions. The government has been working for years to gradually increase the official exchange rate and bring it closer to the free market rate. In order to reach that goal, it has also been shrinking the list of imported items eligible to receive foreign currencies at official rates.

On Monday, the rial’s depreciation continued and the currency was quoted at 60,150 to the dollar in the open market, according to Tehran Gold and Jewelry Union’s website.

“I assure the people the the government is capable of providing enough foreign exchange resources to the market,” Jahangiri added in his address.

He also referred to the government’s post-sanctions achievement in attracting billions of dollars in foreign finance resources to the country, and said, “The government is determined to preserve the stability of the economy.”

Source:

2018, Breaking: Iran Government Unifies Foreign Exchange Rates, Monday, April 9, p.1,<https://financialtribune.com>