Currency prices shot up again on Monday in Tehran as bank-affiliated moneychangers tagged the US dollar at 165,000 rials -- the highest in the past 20 months. Cold coin prices also increased by another 1.3 million rials to hit an all-time high of 70 million rials ($424).
The greenback gained 2,000 rials, or 1.84%, compared to the previous day's close. Euro also dearer 2,000 rials or 1.65% and fetched 179,000 rials.
In the past two days, bank-affiliated exchange shops, considered as CBI's arm for controlling the market, demanded higher rates getting closer to those of the free market.
The Persian-language newspaper Donya-e-Eqtesad construed the move as a sign of CBI plans to tighten its control on forex rates and prevent higher prices in the near permanent chaotic forex market.
Experts say the CBI has raised forex rates mainly to prevent the emergence of “unreal demand” in the market. By doing so, the CBI seeks to diminish the space for rent-seekers and middlemen in the currency market.
The central bank by late Monday did not comment about the worrying trends in the currency market.
The Emirati dirham, one of the key impacting factors on the USD rate in Iran, also registered a growth of 2% on Monday.
"This could take the greenback price higher and up to 168,500 rials," the economic newspaper, which is a sister publication of the Financial Tribune, wrote.
Gold Coin Record
Emami gold coin was traded at an all-time high of 70 million rials on Monday, according to the Tehran Gold and Jewelry Union website. The upsurge is expected to sustain in the upcoming days as the rial tanks and anxious people struggle to save the value of their money by the safe haven asset
However, other experts prioritize the role of major players in the rising gold prices. They say the big players in the market managed to pocket significant returns in the past week (8%) and therefore are likely to cash their assets in order to save gains which, consequently would prevent further growth in the prices.
