Government Tasked with Unifying Exchange Rates in Major Economic Shift
In a significant move to stabilize the national economy, the Iranian government and the Central Bank have been formally mandated to implement policies for unifying the country’s exchange rate system.
The directive emerged from the 133rd meeting of the Council for Dialogue between the Government and the Private Sector. Chaired by the Minister of Economic Affairs and Finance, the high-level meeting included representatives from all three branches of government and the private sector.
Core Directive: A Unified Forex Policy
Based on the meeting’s resolutions and in accordance with Article 11 of the Law on the Continuous Improvement of the Business Environment and Article 12 of the Development Plan Laws, the government and the Central Bank are now obligated to formulate and execute the necessary policies to unify exchange rates and manage them within a floating framework.
The official communiqué, signed by Samad Hassanzadeh, head of the Iran Chamber of Commerce, further stipulates that the Central Bank must manage the foreign exchange market in a manner that safeguards the value of the national currency while preventing severe fluctuations. This policy is grounded in the nation’s development plan laws and the Central Bank’s own legal statutes.
Comprehensive Economic Reforms
The council’s agenda extended beyond foreign exchange, resulting in a series of key approvals aimed at bolstering the national economic landscape. Alongside the forex directive, major resolutions were passed concerning production financing and facilitating foreign trade.
A parallel focus was placed on revising the Law on Combating the Smuggling of Goods and Currency. To this end, a specialized working group will be formed. Led by the Ministry of Economic Affairs and Finance, the group will include representatives from the Ministry of Industry, Mine and Trade, the Trade Development Organization, Customs, the Central Bank, the Judiciary, and various national chambers of commerce.
The overarching goal of these comprehensive measures is to reduce currency volatility, strengthen national production, and significantly improve the country’s business environment, marking a concerted step towards greater economic stability and growth.