Iran: a historic phone call… but no rise in the rial | beyondbrics

Iran: a historic phone call… but no rise in the rial | beyondbrics:

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Yo, Rouhani

Many Iranians have expressed disappointment that their national currency, the rial, did not strengthen over the weekend in response to the historic phone call between Iran’s president Hassan Rouhani and Barack Obama.

The reason the currency market did not reflect the public mood, analysts believe, is because the central bank is determined to curb a currency crisis and shield the market against political news in order to encourage investment, domestic production and non-oil exports.

Valiollah Seif, Iran’s central bank governor, shocked many economists and members of parliament last week when he said the rial’s parity rate against the US dollar was at its “minimum” level and that further rise in value of the national currency could not benefit the country’s economy."

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