Forex Rates Rise After CBI Directive

Foreign exchange rates increased in Tehran's market on Wednesday, following the Central Bank of Iran's latest regulations concerning foreign currency offered at banks to travelers.

According to the latest directive by the policymaker published on its official website, banks are allowed to "sell travel currency at open market rates starting from September 11".

That is while at present, banks are offering foreign currency with a cap of $300 to travelers at official rates that are about 600 rials lower for each dollar compared to the open market rates. This means that the sale of capped currency at lower prices is effectively removed because the banks will offer foreign currency at rates also offered by moneychangers.

What has remained unchanged is that people taking part in the Arba'een pilgrimage (coinciding with Nov. 9) to neighboring Iraq will be able to purchase, at official exchange rates, a maximum of $200 for the purpose of their travel from the designated banks.

At the time of the directive's announcement, the US dollar was priced at 38,940 rials, 84 rials or 0.21% higher than the previous day’s close, Tehran Gold and Jewelry Union's website reported.

Euro was quoted at 48,100 rials on Wednesday in the open market, indicating a 0.12% or 60-rial drop compared with Tuesday’s close.

The British pound was traded for 50,660 rials, 310 rials higher than the previous day’s close. Turkish lira’s prices reached 12,090 rials on Wednesday, marking a 2.03% growth.