• 5 September 2018 - 16:46
  • News Code: 90931

Chairman of Iranian Parliament Economic Commission said foreign exchange rate in the market doesn't have an economic justification and it's a bubble, adding there is power in the country to reduce it.

According to IBENA, regarding the fluctuation in gold and foreign exchange markets, Mohammad-Reza Pour-Ebrahimi made the remarks that this fluctuation is as a result of foreign exchange policy and since the government doesn't use its legal jurisdiction and reserves, we witness this turbulence.

He mentioned that foreign exchange rate fluctuation can affect on all markets either short term or long term, stressing these changes can exert influence on gold market momentarily. Thus other markets such as auto, home appliances... can be impressed.

Chairman of Iranian Parliament Economic Commission highlighted that if we want to ease the turbulence, we should amend foreign exchange policies, going on to say that by taking into account the current situation and sanctions, the government by having double forex reserves in proportion to needs can manage the market, but it hasn't used its legal capacities for any reason yet.

The official emphasized that according to the existing circumstances, any interest rate increase means the coup de grace to our production.

It is worth mentioning that IBENA is an only specialized news agency in banking and economy area, which is affiliated with the Central Bank of Iran.


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