22 Feb 2024
Monday 12 February 2024 - 21:03
Story Code : 415017

Dollar set for jump in upcoming Iranian year

The Iran Project : The Iranian government's budget deficit, the upcoming American elections, the growth of liquidity, and the surge in the inflation rate are among the factors alarm bells for the increase of the exchange rate in the coming Persian year (starts from March 19, 2024).
Dollar set for jump in upcoming Iranian year
Dollar set for jump in upcoming Iranian year
According to The Iran Project, in recent months, Iran's currency market faced many ups and downs. The currency price skyrocketed due to tensions escalation in the region and political issues. Concurrently, , the Central Bank of Iran was seeking to control the exchange rate by injecting foreign currency into the market.

Although, the central bank measure drew experts' criticism, it was effective and managed to ease the currency market tensions.

It seems that in the last months of the year, the policymakers switched to swing currency to compensate for part of their budget deficit.

However, given the relative stability of the exchange rate in the current season, forecasters do not predict a clear future for the exchange rate in the upcoming Iranian year.

In this regard, in an interview with Tejarat News, Ali Tabatabaei, an economic expert, said, "Considering the current liquidity, it is probable that the dollar price floor will be placed in the third channel of the seventh corridor for the year 1403. But I predict a further hike in the mentioned prices."

He went on to say that this is not the real price of the dollar in the market, The price of the dollar lags behind its real value.

Therefore, we will not have a price reduction, but with some measures, we can expect the possibility of stopping or maintaining a certain price by changing the fundamental parameters for the next two to three years, he concluded.

Another economic expert Peiman Molavi also believes that as long as the central bank does not control the inflation rate, the exchange rate will jump.
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