Where do currency fluctuations originate?

Where do currency fluctuations originate?

🔹 The growth of liquidity and inflation, the disharmony of the banks, the budget deficit and the escalation of inflationary expectations caused the currency market to face a storm these days and made the stable control of fluctuations more dependent on fundamental economic reforms than in the past.

Abdulnaser Hammati, head of the central bank, also does not see the recent increase in demand as a result of the lack of currency and believes that expectations and capital outflows created an important part of the pressure. According to him, the central bank has a response plan for such situations and intervenes in the market in order to control the acceleration of price increases, instead of setting a certain rate forever.