Economy, Business And Markets

Rial Expected to Rise After Nowruz

Rial Expected to Rise After NowruzRial Expected to Rise After Nowruz

The rial will strengthen after the start of the upcoming Iranian year which starts on March 21, said head of Tehran’s Gold and Jewelers Union.

“The dollar has climbed since Monday for unknown reasons, leading to an increase in gold coin prices. But with the start of the New Year we will see a decline in [foreign exchange] prices,” said Mohammad Keshtiara, Banker news website reported.

Foreign currencies have rallied versus the rial since Monday, after touching historic lows, but Keshtiara said “this has no specific reason” and is mostly due to temporary changes in supply and demand as we near the year’s end.

The US dollar, which tumbled to its lowest since Sep. 22, rebounded on Sunday versus the rial, gaining over six percent in the following days.

The greenback lost nearly seven percent last week as nuclear deal optimism outweighed year end demand and the dollar’s strength in international currency trade. Demand for foreign currencies usually increases in Tehran as Iran approaches Nowruz (New Year) festivities.

Keshtiara also warned jewelry and gold buyers against buying from unauthorized shops, as “counterfeit coins are untraceable and shops with permits do not sell counterfeit coins under no circumstances.”

“All coins that are packaged and have holograms can be identified and traced to their seller,” said the head of the jewelers union.