Foreign exchange flows… Iran is already started to gain the profit over the improvement of relations with Saudi Arabia and the UAE

On Sunday, the Central Bank of Iran announced that the recent agreements with Saudi Arabia and the UAE led to what it called “good breakthroughs” for foreign exchange in the country.

In its statement issued yesterday, the Iranian Central Bank didn’t indicate the nature of the agreements with Saudi Arabia and the UAE, but confirmed that as a result, last Saturday, it pumped 630 million UAE dirhams into the foreign exchange market, noting its readiness to meet all requests for obtaining a dirham.

The Iranian Central Bank’s statement added that the good cooperation between the Iranian diplomatic apparatus and the government’s economic group has led to positive and tangible results in banking relations with abroad.

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

The Iranian Central Bank confirmed that its work continues during the Spring Nowruz holiday, which lasts for two weeks in the country, starting Monday, attributing the move to its endeavor to manage currency market operations.

The Iranian currency had recorded a historic decline during the past weeks, as its price reached 600,000 riyals to the US dollar in the parallel market, under the pressure of tightening sanctions,

US and European pressures, escalating tensions with the West, and the blockage of nuclear negotiations.

Now, the Iranian riyal has recovered again, as the exchange rate of one dollar in Iran has reached 450,000 Rial.

Iran has been facing a liquidity crisis in foreign exchange since 2018, against the backdrop of severe US sanctions targeting all aspects of its economy, including oil exports and remittances.

By announcing this step, the Central Bank of Iran aims to avoid further deterioration of the value of the Iranian Rial and to raise its value against the US dollar.

The Secretary of the Iranian National Security Council, Ali Shamkhani, visited the UAE last Thursday, accompanied by an economic team, including the governor of the Central Bank of Iran, Mohammed Reza Farzin.

Before the visit, Iranian Noor News Agency, which is close to the Iranian National Security Council, said that Shamkhani’s visit aims to discuss important economic and security issues, without revealing its details.