63 Iranian MPs Call for Dismissal of Central Bank Governor

Simultaneously with the request of 63 Iranian MPs for the dismissal of the Central Bank Governor, the head of the Economic Commission of Parliament announced that the "main decision" regarding currency market management is made "at the Presidential Office" and not at the Central Bank. According to ISNA news agency, in a session on Sunday, April 15, 63 representatives submitted a written notice to the Iranian President demanding the dismissal of Valiollah Seif, the Central Bank Governor, and the "involved parties" in the rising currency prices. Meanwhile, the head of the Economic Commission of Parliament pointed out that the Central Bank officials do not have "accurate information" about the government's plans for managing the currency market and that the "main decision" in this regard is made "at the Presidential Office." According to IRIB news agency, Mohammad Reza Pourabrahimi reported that a two-urgent plan regarding the currency market is being prepared in this commission without mentioning details. He added, "We are waiting for the Central Bank's comprehensive plan so that if there are shortcomings in their program, they can be considered in the urgent plan and assist the government." On April 10, the session of the Central Bank Governor's speech in Parliament became tense. At the beginning of Mr. Seif's remarks, some protesting representatives demanded to speak before Mr. Seif. However, Ali Larijani, the Speaker of Parliament, rejected this proposal and threatened that if the representatives did not disperse, Mr. Seif would not speak, and Parliament would move on to the next agenda. The sudden increase in the dollar price began on April 7 of this year, and within three days, the price of this currency increased by about 900 tomans, reaching six thousand tomans. Following this, Hassan Rouhani's government announced orders to reduce the currency rate, including the "smuggling" of currency over 4200 tomans, the prohibition of holding more than 10,000 euros, and the prohibition of direct currency sales by exchange offices. The Central Bank Governor of Iran spoke on Sunday about the "foundation of a new currency system in the country," which includes "organizing the currency market and creating transparency and oversight over the country's currency resources." However, ILNA news agency reported that many exchange offices are dissatisfied with the Central Bank's decision to prohibit them from selling currency, and many exchange offices are present at their workplaces without conducting any transactions by turning off their announcement boards. According to this report, some of these exchange offices are also refraining from buying and selling coins. This news agency also reported that after the Central Bank's actions, the number of brokers in the market has decreased, but each US dollar is still sold by brokers at a price of 5300 tomans. Tehran police have recently reported the arrest of individuals they call "market disruptors," and Nasser Makarem Shirazi, a Shia cleric, has also called for the execution of "a few key currency brokers." Some analysts had previously stated that announcing a "fixed rate" for currency and "security measures," while they may prevent the increase in currency prices in the short term, will have no effect in the long term, just as the price of currency continued to rise despite "security measures in the previous government" or in the last months of the previous year. Meanwhile, Masoud Khansari, the head of the Tehran Chamber of Commerce, said on Sunday that the price of 4200 tomans for the dollar is "not realistic" and that "the formula for determining the currency price must be established once and for all so that we do not face these fluctuations every year." Ahmad Alavi, an economist residing in Sweden, stated in an interview with Radio Farda that the increase in the currency rate in the Iranian market is "predictable" and said, "Since no changes have occurred in the structure of the Iranian economy contrary to the Central Bank's promises, the same previous and fundamental factors such as inflation, people's rush to the currency market, currency hoarding, and capital flight from the country have led to the continuous increase in currency prices." Fereydoun Khavand, an economic analyst residing in Paris, previously told Radio Farda that influencing the currency market with a decree or through security and emergency measures is "very, very difficult, if not impossible." This economist also names the tense foreign policy of the Islamic Republic of Iran, the jeopardy of the JCPOA, and the possibility of the US exiting this agreement as important factors influencing the turmoil in the Iranian currency market. In this context, Eshaq Jahangiri, the first vice president, mentioned last Thursday that the existence of a "sense of hopelessness" among the Iranian people is one of the factors of the currency crisis, referring to the JCPOA issue.