Foreign exchange rates hit a new record in Tehran’s unofficial market on Saturday. The US dollar crossed the historic level of 320,000 rials and jumped to 327,500 rials, registering 1.5% rise on the session before.
The euro shot up 1.5% or 5,100 rials to be traded at 349,600 rials. The GBP gained 1.53% to buy 398,700 rials and the UAE dirham closed at 89,500 rials, 1.47% or 1,300 rials higher from Thursday.
While forex rates reach unseen highs, the Central Bank of Iran says it is working hard to “boost currency supply to control volatility” through affiliated exchange bureaus. However, it does not say how and when.
The regulator has increased currency prices in the official market. The dollar rose more than 3% in the regulated forex market over the past week, according to the Persian-language economic newspaper Donya-e-Eqtesad, the sister publication of the Financial Tribune.
The regulated market is a CBI-affiliated spot market operated by a network of banks and certified moneychangers dealing in wholesale currency.
The greenback was worth 266,800 rials in the exchange bureaus of the regulated market, indicating 0.34% rise from the previous session.
The American currency was up 0.5% to 267,690 rials at Melli Exchange, an official exchange shop affiliated to state-owned Bank Melli Iran.
Observers ascribe the latest volatility in the currency market to rising demand and expectations among the public that the rates will move higher plus pessimism about political developments.
The recent move by the United Nations nuclear watchdog’s board of governors to pass a resolution against Iran is seen as a key political factor behind the upsurge in currency prices. The IAEA resolution criticized Tehran for allegedly failing to give the agency technically credible answers.
The Foreign Ministry in Tehran in a statement condemned the move as a “political, incorrect and unconstructive” measure.
As expected, the spike in currency rates extended to the domestic bullion market despite the bearish trend in international markets.
The Emami gold coin changed hands at 157.5 million rials on Saturday, rising more than 5% or 8.1 million rials in one day, according to Eqtesad News website.
But the Half Bahar Azadi coin lost 0.06% compared to the session before and was sold for 85.2 million rials. One gram of 18-karat gold changed hands at 14.78 million rials.
In world markets the yellow metal fell more than 1% to $1,808.89 per ounce on Friday and was set for its fourth straight weekly decline. It has declined nearly 4% this week, Reuters said.
