Iran’s central bank is signaling that it will loosen its grip on the rial in an effort to end a dual-exchange rate system seen as an obstacle deterring foreign investment needed to rebuild the economy, Bloomberg writes.
Policy makers, in a decision reported earlier this month, allowed commercial lenders to buy foreign currencies using rial rates set by the market rather than those dictated by the central bank. Akbar Komijani, a deputy governor, said the regulator will be “responsible for this market and will guide it.”
Authorities are “laying the foundation” for plans to unify the existing two rial-to-dollar exchange rates, said Kamal Seyedali, a former deputy governor. The move will lead to more cash entering the banking system rather than circulating through exchange houses, he said.
