Monetary and Banking Research Institute
Date:6/27/2018 11:54:45 AM   |   Code : 293745
Jump in Foreign Exchange Rate Has Psychological Origin – Trade Balance Gap Condensed
Dr. Hamid Zamanzadeh:
Jump in Foreign Exchange Rate Has Psychological Origin – Trade Balance Gap Condensed
 
Deputy Chairman of the Monetary and Banking Research Institute (MBRI) stated: “Researches denote that psychological reasons caused jumps in foreign exchange rate during the recent months.”

Dr. Zamanzadeh added: “Jump in foreign exchange has been observed during the last 3-4 months where the real exchange rate depicts that average foreign exchange rate in June reached up to 66540 IR Rials. Analyzing the foreign exchange rate based on its historical trend in the 2000s highlights the fact that real exchange rate has positioned at its historical levels during the recent 16-17 years.”

“Real foreign exchange rate in 2001 touches 67000 IR Rials in accordance with the evaluations on the current period. It monthly reduced to 66000 IR Rials during the intensive-imposing sanctions against Iran in 2012 and 2013.” He highlighted in the 28th Annual Conference on Monetary and Foreign Exchange Policies.

Dr. Zamanzadeh also added: “One of the key questions about the jump in exchange rate through the past months is whether it is fundamental or bubble-based. The size of the jump would necessarily not denote the bubble in foreign exchange rate and the whole leap could be fundamental.”

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