Extreme foreign exchange-market fluctuations are highly likely to continue to menace Iran’s national currency, the rial, and the Iranian economy.
A new integrated foreign exchange market is in the works to meet this challenge. NIMA, the state-run secondary foreign exchange market launched just over a year ago, hasn’t brought about the intended results for the Iranian economy due to the Central Bank of Iran’s weak regulatory oversight. Nevertheless, the CBI claims that this newly designed currency market will be more effective and marginalize middlemen, whose speculatory activities have largely contributed to the rial’s devaluation at times of economic and political crises.