Aug 09, 2018 11:11 Asia/Tehran

A senior Iranian MP has said "We expect the government-controlled market and the secondary market to cater for 90 percent of demand for foreign currencies within the country".

In an exclusive interview with Iran Press on Wednesday, senior MP and a spokesman for the Planning and Budget Commission of the Iranian parliament, Mohammad Mehdi Mofateh, has emphasized that we are currently in the middle of an economic war with the United States.

The senior MP added:  "The Leader of the Islamic revolution ordered the heads of the three branches of the government, to form the 'high council for economic coordination', under the leadership of the president, to manage Iran's economy particularly  when we are in an economic war with America.  The Iranian parliament (Majlis ) also has a significant presence within the high council for economic coordination, with highly-qualified expert MPs being members of the Council."

Mofateh added:  "There is only one decision-making body.  When the High Economic Council announced a package of measures to stabilize the economy , the markets reacted very well to this package of measures, and we saw significant price decreases on the actual day the first pahse of US sanctions cane into force. This was very encouraging."

In further remarks, Mofateh said:  "The High Council for Economic Coordination is responsible for managing Iran's economy, now that we are in an economic war with the United States, and the parliament (Majlis ) will certainly assist in any way it can. The Council must not overlap with the Majlis in terms of legislation. The High Council must not be seen as a replacement or substitute for the legislative work the parliament performs. But since we are in the middle of an economic war with the U.S., and since the High Council is leading us in this war, certain decisions may need to be made urgently , and after approval by the Leader of the Islamic revolution,  the decisions will be implemented."

Asked to elaborate on the details of the package of measures by the high council for economic coordination, Mofateh said:  "Three markets have been envisaged for currency transactions. These are the government-controlled market, where the US dollar has a fixed  value of 4200 Toumans,  dollar revenues are through the sale of crude oil, natural gas , etc.  , and this will be used to provide essential items such as foodstuffs, medicines and pharmaceutical drugs, and so on. The secondary market, which is linked to the stock market and the currency market, is where the suppliers of hard currency, such as exporters of oil, gas petrochemicals, provide the market with their dollar and hard currency revenues , and those who want to buy or are in need of hard currency,  such as factories and businesses who wants to purchase machinery and equipment , etc, meet and come together. According to the level of supply and demand, the market mechanism determines the price of hard currencies , US dollar etc.  A third market which we hope will never seriously get off the ground, is the black market for hard currencies. We very much hope and expect the government-controlled market and the secondary market together, can cater for over 90 percent  of demand for foreign currencies within our country.  We hope that this mechanism can account for all the currency needs of the country". 

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