CBI capable of controlling currency market: governor

Governor of Central Bank of Iran (CBI) Abdolnasser Hemmati says the bank is going to control the currency market just like it did in the previous year, IRNA reported.

Stating that the current situation of the markets in the country is not more complicated than in August and September last year, the official said, “with the serious efforts of my colleagues in the Central Bank, the stability will be established in the markets.”

"In those days, as the U.S. sanctions were intensifying, the foreign exchange markets were severely disrupted and the dollar rate in the market reached very high levels,” Hemmati wrote in an Instagram post on Monday.

But with the CBI management and the measures taken, despite all the problems over the past two years, the relative stability of markets was retained and the country registered a positive economic growth in the end of the previous Iranian calendar year (March 19), the chief banker said.

The official noted that the current turbulence in the market is a result of the coronavirus outbreak which causes the three-month shutdown of many economic activities in the country and also the reduction of oil prices as well as the continuous pressures of the U.S. sanctions.

“The situation is difficult, but it is improving and can be managed and stabilized,” Hemmati stressed.

Back in February, the official had announced that CBI’s major economic indicators show that the economy is emerging from a recession that began nearly two years ago when the United States imposed sanctions on Tehran.

The official has previously cited reports by the CBI and the Statistical Center of Iran suggesting that the economy had started to grow regardless of the share of oil revenues in government budgets.

Back in January, Hemmati had announced that CBI was fully controlling the currency market and people should not have any worries over the exchange rates.

source: TehranTimes