Foreign exchange rates jumped again on Saturday in Tehran's unofficial market to continue on the upward trajectory seen for months.
The US dollar shot up by 4.22% to buy 433,300 rials on Saturday. On Thursday it was worth 415,000 rials, down 0.61% on the previous day's close, Eghtesadnews website reported.
Currency rates have scaled to historic highs over the past several months as the rial tanks and people hunt for safe havens to protect what is left of their hard-earned savings.
Melli Exchange and other bank-affiliated moneychangers tagged the dollar at 436,320 rials on Saturday, up 3.93%. These moneychangers are seen as the central bank’s “arms for controlling rates”.
Iran Central Exchange, known as the regulated market, priced the greenback at 433,300 rials, up 3.99% at Thursday's close.
The euro gained 3.94% or 18,590 rials on the day rising to 470,730 rials in the free market. It slipped 1.95% on Wednesday and was traded at 453,590 rials. Melli Exchange sold the European single currency for 473,690 rials, up 8.9% from the previous day. The UAE dirham lost 1.24% on Saturday and was worth 121,400 rials in the unofficial market.
Forex rates declined in Tehran's free market after the Central Bank of Iran announced new measures to intervene further to control the highly volatile market. Rates at ICE were surprisingly higher than in the free market after the implementation of the new measures.
The Central Bank of Iran announced on Thursday that five banks will start selling dollar and euro without requiring buyers to register at Iran Central Exchange website.
Elaborating on the latest measure, the CBI head said Wednesday that people can now “buy as much foreign currency as they want without the need to register at the ICE.”
On the same day the CBI said licensed forex shops can buy/sell foreign currency based on the cash (unofficial market) price posted on ICE website. The announcement came after the new CBI boss Mohammad Reza Farzin's tweet. "The Central Bank of Iran and exchange shops have started a joint action plan to help restore stability to the country's economy," he tweeted.
As the new trendsetter the "CBI will enter the free currency market and set rates," he said in the rare announcement, which of course came as no surprise to informed analysts aware of the workings of the chaotic currency market and the role of the CBI.
In a reply to a Twitter user Farzin said that the plan is aimed to try and “end the rent-seeking created due to the difference in the official and black market currency rates.”
