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Iran’s cenbank vows to restore calm to foreign exchange market

File photo shows people looking at prices of foreign currency in front of a shop in downtown Tehran.

The Central Bank of Iran (CBI) governor Ali Salehabadi says the top lender will intervene in the country’s foreign exchange market to control prices that have risen to record highs in recent days.

Speaking to reporters on Sunday, Salehabadi said the CBI will introduce a series of unprecedented measures in the upcoming days to control feign currency prices in the Iranian market.

He said the CBI will lift a ban on supply of foreign currency to individuals and businesses while allowing the trade of hard currency earned by exporters on the high street.

“This will lead to an increase in the size of trade and we will be able to fully cover the demand in the market,” said Salehabadi, according to remarks published by the official IRNA news agency.

The comments came after senior CBI officials held an emergency meeting with forex trade businesses in the CBI headquarters in Tehran.

The meeting came after foreign currency prices rose to an all-time high on Sunday with American dollar reaching above the 330,000-mark against the Iranian rial.

Authorities admitted prices had risen mainly because of recent negative development around Iran’s nuclear program and fears that international talks to revive a 2015 nuclear deal may collapse.

Reports earlier this month had suggested that the top decision-making body in the Iranian government had granted new mandates to the CBI to intervene in the exchange market at times it deems is necessary.

Currency traders said on Sunday that prices will drop in the upcoming days with the introduction of the new CBI policies, including the removal of restrictions on the purchase of foreign currencies by individuals and businesses.

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