Most of all, I am looking for a reduction in the exchange rate

Most of all, I am looking for a reduction in the exchange rate
  • 2021-01-20
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Governor of the Central Bank: At present, we manage the country's economy without oil. As the Governor of the Central Bank, I am most interested in reducing the exchange rate, and there is no intention to increase the exchange rate.

According to the International Iranian Stone Exhibition, Abdolnasser Hemmati stated in a TV program: In the recent negotiations, the South Korean Foreign Ministry promised to leave and return with a full hand. Of course, they offered to give Corona equipment, but we have $ 7 billion, which is our right, and I told them that they really have to pay for Iran and pay financial damages, and that money was there before and after I took office.

He added: "Korea's main problem is that they must go to American banks to convert money." We used to import goods from Korea, and when the embargo was imposed, we could no longer import goods from Korea, and all of them stopped, and in general, our trade with Korea was with the export of oil and the import of goods. In general, there was no will to do the work and unfortunately they do not have the political will, but they themselves said that they will return soon with a positive opinion.

Sanctions have had no effect

Hemmati continued: "We take our power from the people and we should have all the dimensions of power in the international arena, but this time the sanctions were unprecedented and mobilized the whole world against the Islamic Republic. The country stood on its own two years and Today, the situation is moving towards positive, and this shows that sanctions have not worked.

"In Iraq, too, some have no political will, and their oil revenues after the US invasion were designed in such a way that they first had to go to Washington and get approval, and because their central bank was threatened, their hands were practically closed," he said.

The end of Trump's political life is the day of Iran's victory

"We have to work," he added. We can not sit back and say no. Trump sought the collapse of our country, and today was the day of their defeat for maximum pressure, and the end of Trump's life in politics is the day of Iran's victory. Trump had come to overthrow and change Iran's political system, and we witnessed his various games and actions aimed at the collapse of the economy.

Hemmati continued: "Today is the day of defeat and the end of Trump's life and the victory of the Iranian nation." All of Trump's efforts were to create maximum inflation and negative growth and to create hyperinflation with the aim of collapsing Iran's economy. In the conditions of hyperinflation, it is not possible to control the economy, which, of course, with the wisdom of the Supreme Leader and the support of the people, we saw the opposite of their goals.

The sharp decline in oil revenues in the last two years

According to the Governor of the Central Bank, over the past two years, the figure for foreign exchange earnings from oil fell sharply to less than 20 billion in two years, while the average oil revenue in previous years was over 40 billion.

He continued: "Since I came to the Central Bank, our policy has been not to exchange money and to allow the exchange rate to be in the hands of the market, and for us only the supply of medicine and basic goods is the first priority." The Americans wanted to take that priority out of our hands and us to make money, which did not happen with the central bank management. So far, we have provided about $ 8 billion in raw materials and we have been able to run the economy without oil.

Hemmati said: "I know that the pressure on the people is high and the lower classes are suffering very hard, but our goal was to prevent hyperinflation above 120%, which fortunately was achieved. While in 1997 it was predicted that the price of the dollar would go up to 40 and 50 thousand tomans, but we stopped it and in a long period of time we stopped it at around 11 thousand tomans, and now the trend is decreasing and Has stabilized. Coronas and incidents earlier this year disrupted non-oil exports and closed borders, reducing our foreign exchange earnings.

Central bank revenues have reached equilibrium

The Governor of the Central Bank added: "We did not have any problems until May, but in June the demand increased and we had to provide 75,000 billion tomans from the banking system for people's livelihoods, businesses and the raw materials needed by factories." The central bank's revenues fell sharply in the first six months, but now the trend has stabilized, which is why I believe Trump has failed.

He continued: "Regardless of which government is in office, we will continue the process we have chosen for currency and monetary management." According to statistics, our oil and non-oil growth has been positive in the first six months of this year, because we have been successful in guiding the domestic economy and we will continue to do so. If the other side (the United States) agrees with Iran's views, how much better, but otherwise we will advance the management process that we have taken.

Many people lost money as the exchange rate fell

According to Hemmati, the central bank does its best day and night and all it thinks about is controlling inflation. Money like the one we owe for the corona has an effect on the monetary base and cannot be absolved and all dimensions must be considered together. My point has always been that people should not invest in the foreign exchange market because it is not good for our national interests.

At the end of his speech, the Governor of the Central Bank said: "Fortunately, the people have followed this advice and now, with this fall in the currency, many greedy people have lost." As the head of the Central Bank, I am most looking for a reduction in the exchange rate, and there is no intention to increase the exchange rate. I have two policies, one of which is to protect national reserves and the other is to create competition in domestic investment that prevents capital from leaving the country.