The rial compensated some of the earlier loss on Tuesday as foreign currencies dipped dragging down prices in the domestic gold market.
The US dollar retreated to 324,000 rials in Tehran’s free market, losing 6,000 rials or 1.8% on the session before. It hit a record high of 333,000 rials on Saturday.
Likewise, the euro lost 1.85% or 6,400 rials to end at 339,200 rials. The GBP shed 2.2% or 9,100 rials to buy 397,800 rials and the UAE dirham dropped below the 90,000-rial level to fetch 88,600 rials, down 1.77% from Monday.
Observers link the decline in forex rates to investor uneasiness about “oversupply” in the market as the Central Bank of Iran promised to do so earlier in the week.
After meeting with managers of currency exchange bureaus on Sunday, the CBI Governor Ali Salehabadi issued an order to moneychangers to buy overseas currency income from non-oil exporters at “negotiated rates”.
That allows exporters to sell their forex income at higher rates than Nima, a special platform where exchange rates are usually lower than the open market. Rate differences have become much wider in recent days as forex prices have risen to historic highs.
Nima is an online platform affiliated to the CBI through which exporters sell their overseas currency income in the form of hawala. Through this platform companies buy currency for importing goods, machinery, equipment and raw materials.
Prices in the domestic bullion market also fell following the downswing in currency market. The popular Emami Gold coin was quoted at 157.5 million rials on Tuesday down 3.2% or 5 million rials in one day.
The Half-Bahar Azadi coin dropped 1.12% or 1 million rials to change hands at 89.5 million rials and one gram of 18-karat gold was worth 14.42 million rials, down 2% from the session before.
