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Iran: Rapprochement with Saudi, UAE led to a improved forex market

March 20, 2023 at 12:03 pm

A view of the Central Bank of Iran [@AtharInanloo/Twitter]

The Central Bank of Iran (CBI) said the recent agreements concluded with Saudi Arabia and the United Arab Emirates (UAE) have led to “good breakthroughs” for foreign exchange in the country.

In a statement issued yesterday, the CBI said the intensive negotiations with Saudi Arabia and the UAE have led to positive results in communication between banks and achieved tangible results.

According to the statement, the results will complement the CBI’s foreign exchange policies by creating new financial channels and establishing lines of credit and investment for Arab countries, which will set clear prospects for managing the foreign exchange market in the near future.

It pointed out that the government’s economic diplomacy of opening new financial channels and establishing lines of credit and investments for Arab countries in Iran will open new horizons for managing the currency market in the near future.

Some 630 million Emirati dirhams ($171 million) have been pumped into Iran’s foreign exchange market as a result of the deals which have been agreed, the CBI said, without giving details of the details.

Iran has been facing a foreign exchange liquidity crisis since 2018 due to severe sanctions imposed by the United States.

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