Central Bank of Iran governor Mohammad Reza Farzin has said the bank has sufficient foreign currency and gold reserves to manage market conditions following the activation of the snapback mechanism, Afarinesh reported on September 30.

Farzin told ILNA that the bank employs several methods during such periods of currency devaluation which is ongoing with the rial dropping down IRR1,144,000 against the US dollar on September 30.

One approach involves accelerating foreign currency supply for imports, both for basic goods purchased at IRR285,000 per dollar and other goods supplied through the exchange centre.

A secondary foreign exchange market has been established to increase supply. "We launched this market one month ago and are trying to deepen it and supply more foreign currency," Farzin said.

Regarding gold price management, he said the bank has increased the number of coin auctions over the past two weeks and raised pre-sale volumes to supply more coins to the market. "Our effort is to reduce gold price fluctuations," he said.

The central bank governor noted that gold price premiums have decreased over the past two or three months. He said gold prices also rise due to increases in global prices.

"Therefore, we have the necessary confidence in terms of foreign currency and gold resources. These conditions will definitely be managed," Farzin said.

He added that short-term fluctuations stem mostly from expectation factors. "We hope that with positive measures being taken by the government, we can reduce their effects," he said.

Earlier in the day, the US dollar was trading at IRR1,128,000 for buying and IRR1,120,000 for selling in Iran's free market, according to exchange rates on Bonbast.com The euro stood at IRR1,323,000 for buying and IRR1,325,000 for selling, whilst the British pound reached IRR1,514,500 for buying and IRR1,516,500 for selling.

Regional currencies showed varied movements against the rial. The UAE dirham was quoted at IRR310,500 for buying and IRR311,000 for selling.

The Kuwaiti dinar, one of the strongest currencies in the region, traded at IRR3,688,500 for buying and IRR3,692,500 for selling. Gold coin prices showed significant increases. The Emami gold coin reached IRR1,115,000,000 for selling and IRR1,095,000,000 for buying.

The Azadi gold coin traded at IRR1,052,000,000 for buying and IRR1,032,000,000 for selling.