Iranian Association of Producers and Exporters of Gold, Jewelry, Silver and Precious Stones, which is responsible for gold pricing in domestic markets, announced that it will price gold base on the foreign currency exchange rates in Iran’s Forex center, which is under the management of Central Bank of Iran. CBI expressed its objection toward this decision.
“According to the latest communiques issued by government, all the local associations and unions are needed to price their products and services base on the exchange rates of Forex center.” Iran’s head of Gold and Jewelry Union Mohammad Kashtiaray said. But Peyman Ghorbani, one of the officials of CBI, refused the comments made by Kashtiaray and said Central Bank of Iran will regulate the gold markets in Iran and it has not yet decided about the future pricing models. “We cannot price gold base on the rates of Forex center because those numbers don’t include gold products.”
“We believe markets decide the price of gold and jewelries and CBI should only observe and monitor the prices set in these markets. We must manage the fundamental prices which regulate markets.” Peyman Ghorbani added.
Iran is currently under the severe sanctions set by the United States and its European allies on Iran’s economy. Recently Iranian Rial has lost major part of its values against foreign currencies.