The stability of the currency market does not mean a floor

The stability of the currency market does not mean a floor

The purpose of intervention in the currency market is to manage volatility and create stability, not to set a floor rate or stabilize the price at a certain number.

In changing conditions, the central bank can intervene by buying or selling a currency depending on the market situation.

The experience of 1397, 1398 and 1399 also shows that the exchange rate does not necessarily remain at the same level after sharp jumps; For example, in one period the rate returned from around 20 thousand tomans to 11 thousand tomans.

The relative stability of the last few days does not mean a floor for the current rate, and this price level cannot be considered a stable market rate.