Iran's central bank governor advocates for offshore rial in trade with Russia
Date
5/14/2024 10:05:23 AM
(MENAFN) During a meeting with senior members of the Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA), Mohammadreza Farzin, the Governor of the Central Bank of Iran (CBI), emphasized the importance of prioritizing the use of offshore rial in trade exchanges with Russia. He highlighted that operational measures have been finalized in this regard. Farzin underscored the achievements of the CBI in restoring major financial indexes such as liquidity rate, inflation, and monetary base to long-term levels. He outlined the CBI's plans to stabilize the forex market through the Iran Center for Currency and Gold Exchange this year.
Farzin also addressed concerns regarding efforts by adversaries to destabilize the Iranian forex market and increase inflationary expectations. He called upon economic actors to collaborate with the central bank in curbing inflation and strengthening production. Mohsen Karimi, the Deputy Governor of the CBI for International Affairs, provided further insight, stating that the CBI is actively pursuing the use of offshore rial for trade with Russia, Afghanistan, and Iraq. He mentioned that the mechanism for trade with Russia is nearing finalization and will soon be operationalized, predicting trade exchanges of 1 to 1.5 billion dollars between Iran and Russia in offshore rial.
Karimi mentioned ongoing discussions with Afghan and Iraqi officials regarding similar trade mechanisms. ICCIMA Head Samad Hassanzadeh commended the CBI's efforts in calming the foreign exchange market amid regional political disputes, advocating for increased cooperation between the CBI and the Iran Chamber of Commerce to regulate trade processes. Yahya Al-e Eshaq, an ICCIMA member, called for inclusive policymaking involving all business actors, including those engaged in imports and exports.
Majidreza Hariri, the Chairman of the Iran-China Joint Chamber of Commerce, emphasized the need to identify real private-sector exporters unaffiliated with state-owned companies. He suggested allocating foreign currencies at preferential rates to these entities based on their areas of activity, promoting fairness and supporting the growth of the private sector.
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