Page 7 - MEOG Week 01 2023

MEOG FINANCE & INVESTMENT MEOG

Iran replaces central

bank chief after rial tanks

IRAN IRAN on December 29 appointed a new Cen- of around 50%. Sentiment towards the rial also
tral Bank of Iran (CBI) governor following a new soured as it became clear that the talks with
phase in the collapse of the Iranian rial (IRR) that major powers to revive the nuclear deal, or
sent the currency beyond the 400,000/$ thresh- JCPOA—a move that would boost the Iranian
old for the first time ever, at one point as far as economy—appear to be irretrievably bogged
440,000/$. down, save an unexpected development.
One month previously, the rate was On December 30, Farzin told state TV that
360,000/$. the CBI would intervene in the FX market to
The new governor is Mohammad Reza Far- support the rial, adding that the regulator was
zin, a former deputy finance minister who had setting an exchange rate of 285,000/$ on a state-
been CEO of Bank Melli Iran since 2021 and was run website where importers would be able to
chairman of the board of Karafarin Bank before buy hard currencies. The CBI, he said, would try
that. Farzin replacesd Ali Salehabadi, who was to bring the free-market dollar down to this level,
governor for 15 months. he added.
During the cabinet meeting at which Farzin “The [current] exchange rate is distorted ...
was appointed, Iran’s president, Ebrahim Raisi, and we will of course intervene in the free mar-
emphasised the importance of controlling the ket,” said Farzin.
value of foreign currencies, IRNA reported. The rial regained 10% of its value against the
The rial lost around a quarter of its value dollar after the appointment of Farzin.
against the dollar from the point when nation- However, the currency remains embattled.
wide anti-regime protests broke out on Iran’s When the nuclear accord was signed back in
streets in mid-September. That fuelled inflation 2015, it was trading at 32,000/$.™

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