Forex Trading at 3 Rates in 3 Markets
EghtesadOnline: A third unofficial foreign exchange market has emerged, despite the government's efforts to prevent the turbulent currency market from spiraling out of control, a lawmaker warned.
"In fact, a third forex market has been formed due to the government's mismanagement, which means that foreign currencies are being traded at three rates in three separate markets," Ezzatollah Yousefian, a member of Majlis Plan and Budget Commission, told ICANA on Friday. A sudden, sharp drop in the value of rial against the dollar in April prompted the government to implement a relief plan, under which a single official rate was announced at 42,000 rials and any trading beyond that rate was banned. The plan failed and increased the turmoil of an already-fluctuating market. Earlier this month, the Central Bank of Iran announced the launch of the Secondary Forex Market, wherein importers and exporters are allowed to agree to a negotiated dollar rate for making transactions. Experts have warned that the Secondary Forex Market is underperforming and needs more government support, Financial Tribune reported.