Recently, there have been rumors about the single exchange rate of the dollar in the country’s news outlets. This is a necessity that should have been implemented in previous years. But whenever we prevent losses, there is a benefit. Unfortunately, any market in which a product is double-priced or multi-priced will be a source of corruption and rent-seeking. The dollar market is no exception. In the following, we will deal with the ifs and buts of the single dollar. Please be with Artan Press.
*** The best time to implement a single exchange rate policy
In the current situation where the country has partially emerged from the heavy sanctions imposed by Donald Trump and has taken the path of selling oil and making money, the foreign exchange market must be given a chance to recover and rebuild itself. Despite the stigma and corruption of the foreign exchange market, it should not be under the pressure of traders. One of the best ways to break the hands of speculators and market speculators is to devalue the dollar. This can greatly reduce economic calculations, especially on exports. In the current situation, there is an opportunity to revive the value of the national currency against the dollar. So the monopoly dollar approach is a wise choice. The new government must plan for this as soon as possible.
*** The need to use the current opportunity to improve single exchange rate
There is currently no final agreement between Iran and the United States. The blink of an eye will start again in the US presidential election, and it is unlikely that Trump or anyone with his views will come to power again. Iran must seize this opportunity to revive the value of its national currency. This will greatly reduce the vulnerability of the Iranian economy. Currently, this decrease in the dollar rate is due to the margins related to the possibility of an agreement. If no agreement is reached, the price of the dollar will rise again, and we will see rising prices and inflation again, and all the threats we have faced in previous years.
*** Monopoly dollar policy and liquidity elimination
An important issue that the new government should pay attention to is not entering the areas that create liquidity. This may be unavoidable in the current context, but the government can eliminate much of its unproductive liquidity by introducing a weak monetary dollar. This will greatly increase the living standards of Iranians and we will most likely see a drop in inflation in the coming years. But implementing the one-dollar dollar approach requires employing experts and associates in managerial positions in economic organizations and in daring and audacity. It remains to be seen what the new government will do in this difficult test.
*** The monopoly dollar policy and the removal of rents and losses from the economy
The single exchange rate of the dollar will eliminate a large amount of rents and corruption in commodity markets. If the new head of government comes out to fight corruption, this is a clear way to start. The dollar strategy saves the monopoly of the people and the country’s economic policymakers from going astray and speeds up economic decision-making. With the reduction of market ambiguities, the wheel of the economy will move faster and we will see a way out of the stagnation in the country’s commodity and service markets. Multipurpose rates led to inefficiency, wasteful use of currency, disrupted resource allocation within the economy, and rent-seeking conditions. Today, everyone is aware of the impact of the two exchange rates on corruption and waste in the economy and politics.
*** The need to change the policymaker’s view of single exchange rate
Economic policymakers look at the foreign exchange market through the eyes of a commodity market. Currency is also a commodity whose inflation rate and trading volume determine its value. The government should not look at currency as capital. In recent years, this view has unfortunately disrupted the market order and we have witnessed a decline in the supply of dollars in the free market and fueled further fluctuations. The single dollar can reinforce this commodity-driven currency trend. Many of the country’s economic and social problems will be solved by implementing a one-rate dollar policy. But this issue needs a strong will, because the challenges of its implementation lie in cutting the iodine of rent-seekers in the foreign exchange market. This will explain the government’s performance well.
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