Publishe Date: 8:27 PM - 9/14/2012 | Print

Dollar rise in Iran market questions governmental practice

Economy - Khabar Online - This week the U.S. dollar was boosted against Iranian rial in markets once more, as a dollar was exchanged for between 24000 to even 27000 rials and set a new record.

The U.S. dollar rate began to advance from the early 2012 in Iran, an up and down process in the exchange market has been underway not due to the fluctuations of dollar rate at international markets, but for a growing demand in the local market.
The head of Central Bank of Iran (CBI) Mahmoud Bahmani called the new wave of dollar raise “unnatural and false” saying it’s simply a stock jobbery fomented by some “elements”.
“In terms of foreign currency deposit, we are so rich and are able to confront such actions. One of the problems is that a part of dollar notes in Iran is currently kept by people in their homes not in banks,” he said.
The current situation of governmental banks has caused doubts among people who somehow rather prefer to keep their foreign currency at home rather than depositing them in those banks. 
As usual, the Iranian government accuses conspirators and profit-seeking dealers and holds them responsible for dollar rate advancement, “those who attempt to make obstacle in the way of governments development plans at the time of an economic war with the world," It says.
Months ago, Iran's Minister of Intelligence Heydar Moslehi had said that persons involved in the sudden rise of foreign exchange and gold price in the country have been identified and his ministry is to follow the process to spot others behind the scene of confusion in those markets.
However, some opponents of Mahmoud Ahmadinejad's government suggest that the main reason behind dollar and other foreign currencies soaring rate lies in lack of a plan by CBI to control the exchange rate. They say by selling foreign currency, the government tries to compensate for its budget deficit.
They argue as well that since the government is the main provider of foreign currency in the market sold by dealers, with bringing less foreign currency in the market it increases the demand and rises the price.
Iran is at a row with the West powers over its nuclear program .The West claims that the Islamic Republic's Atomic program is aimed at developing a secret military nuclear plant, but Tehran stresses that as a signatory to the Nuclear Non-Proliferation Treaty (NPT), its nuclear activity has been centered on civilian purposes including medical research and electricity production. Moreover, no evidence has been found by now to prove Iran's nuclear program has been diverted to military purposes.
So far, The United Nations Security Council (UNSC) has imposed four rounds of economic sanctions against Iran and the U.S. the EU and their allies have put even more embargos on Tehran, trying to bring the Islamic Republic to its knees. 


Tags: Iran - NPT -
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