Economy, Business And Markets

CBI Lowers Rial Value

CBI Lowers Rial Value
CBI Lowers Rial Value

The Iranian rial was devalued against 17 currencies on Saturday. The move initiated by the Iranian Central Bank (CBI) is part of a trend to gradually weaken the rial’s official rate. The rial was also revalued against 18 other currencies, though the central bank held four exchange rates unchanged.

The British Pound was up by 97 rials and is now valued at 42,972 rials. The Euro went up 83 rials and priced at 33,837 rials. The US Dollar however, remained virtually unchanged at 26,705 rials

Although the official bank rates have limited use beyond importing essential goods like food and medicine, the rates do help investors, as said by a currency trader in Tehran. “The rates can show the central bank’s attitude towards the market.”

Based on the new rates the Swiss Franc is 28,051 rials, Australian Dollar 23,479 rials, Canadian Dollar 23,774 rial, United Arab Emirates Dirham 7,272 rials, Turkish Lira 11,951 rials, Chinese Yuan 4,365 rials and the Japanese Yen stands at 246.92 rials.

Iran currently has a multiple exchange rate system, in which the central bank allows an over 20 percent subsidy for the import of essential goods and government transactions using the country’s oil revenues.