Jahangiri’s talk about the exchange rate creates many doubts:
The first issue is that if the only price in the market is to be 4200 tomans from tomorrow, and anyone who offers otherwise is considered a #smuggler, how are you going to force the exchanges that bought the dollar at 5500 to offer it at 4200! A rate that is even lower than the dollar rate in the last four months!
The second problem is that, with this pricing, people who bought dollars to maintain the value of their assets, now with this pricing, Dola Pahana is losing money, which means that they have bought expensive dollars and have to sell them cheaply. How do you convince this group of people?
The third issue is where has this amount of dollars been so far? If the government has been able to supply this high amount of currency and has not supplied it before, this suspicion arises that the government deliberately created a one-week shock and a false market to collect a major part of the liquidity and compensate for the #budget_deficit. And now he decides to control the market. Especially the silence of the authorities for a week reinforces this issue.
The fourth issue is how long will it be possible to supply the dollar at such a rate, which many experts believe is lower than the equilibrium rate? Doesn’t supply below equilibrium prices lead to a black market?
The fifth issue is, assuming that Mr. Jahangiri’s words are accepted, under what control mechanism will the currency be available to the exchanges, and what will the central bank’s monitoring system be in the supply of currency at such a price?
The sixth issue is, is there a certain ceiling for each of the purposes of currency demand, such as #travel currency, #study currency, import, etc.?
The seventh issue, if this policy is to be implemented from tomorrow, should not its details be specified and people should know from which system, how much and how they can receive their currency?
The eighth issue is that, according to Mr. Jahangiri’s statement, no one can announce anywhere in the market because a price that is not known where it may be determined. It is inferred that the currency market can be controlled with an order rate. In this case, what will happen to the #market_mechanism, which many government advisors have been beating the drum of in these years?
The 10th issue is that the deputy government has considered the allocation of currency dependent on proof of need, what is the way to prove it and where should the evidence be provided?
Finally, in the opinion of the government of men, such incomplete comments and decisions of #Khalq_al-Saaa are the right way to control the market? The news that is published at 11 pm and is supposed to be implemented from tomorrow morning, while no one is aware of its details. Don’t you think that the reason why our economy is like this today is the hasty and sudden decisions of the officials?
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This post is written by Mohammadreza_satkin