Foreign currency rates declined in Tehran’s open market on Saturday for the third consecutive day with the downturn extended to the gold market.
The US dollar was traded 156,000 rials, down from 158,500 rials quoted by moneychangers and currency dealers in Tehran’s free market on Thursday.
Euro dropped about 2% to 168,000 rials and the UK pound sterling retreated to 192,000 rials, down from 197,000 rials a session earlier.
Currency rates soared to 166,000 rials for one dollar in early April when dealers and middlemen gouged prices in the absence of authorized exchange bureaus and moneychangers affiliated to the Central Bank of Iran.
The forex market gradually returned to a semblance of normality last week when the government partly eased restrictions on businesses to control the deadly coronavirus, and more exchange bureaus resumed forex trade.
Market analysts ascribe the decline the slide to lack of effective demand for currency, according to the Persian-language newspaper Donya-e-Eqtesad.
Nima Rates Rise
However, currency rates in the secondary foreign exchange market, known locally as Nima, have been rising rapidly.
Nima is a CBI-affiliated platform where exporters sell their overseas currency and companies buy it for importing non-essential goods, machinery, equipment and raw materials. Nima rated are usually below the open market rates.
One dollar currently sells for 156,990 rials at Nima and buys 154,540 rials, marking a 20,000-rial increase in one week.
The economic newspaper wrote the spike in currency rates in the secondary market is due to the CBI’s new economic policy, which includes less intervention and giving more space to exporters.
It appears the CBI is exercising extra caution and has reduced currency offers on Nima in light of uncertainties arising from the infectious disease spreading over the world and plummeting crude oil prices.
Gold Dips
In tandem with currency rates, gold coin prices also dropped on Saturday in the domestic market. The Emami gold coin lost 2%, or 1.25 million rials, and was traded for 62.65 million rials.
Bahar Azadi gold coin shed 4.2% to reach 59.5 million rials, according to the Tehran Gold and Jewelry Union website.
Gold also traded lower in international markets on Friday by 2%. Global god prices fell after the Donald Trump proposed guidelines to reopen the US economy and encouraging data related to a potential COVID-19 treatment drove investors towards riskier assets. Spot gold was down 1.9% at $1,685.84 an ounce for the day.
