CBI Raises Official FX Rates

In an unprecedented move, the Central Bank of Iran has increased the official rate of US dollar by 300 rials on Saturday.

CBI began gradually increasing the official rate of the greenback about two years ago as part of its longstanding plan to unify the dual foreign exchange rates, but had yet to hike the rate like this in a single move.

The unofficial market rate of USD experienced an uptick of 280 rials, reaching 4,059 rials at Saturday's market close in Tehran.

Samad Karimi, CBI's head of Exports Department, said external factors have also impacted the official rate increase, identifying them as European Central Bank's decision to prolong its bond-buying schedule until September 2018 and rising tensions in Catalonia that has just declared its independence from Spain.       

Positive US economic indicators, an increased likelihood of US President Donald Trump implementing his tax reform plan and the hike in interest rates by Federal Reserve were other reasons alluded to as contributing factors by the official as reported by the news portal of the Monetary and Banking Research institute.  Karimi noted that the aforementioned factors boosted the value of the greenback against euro, which in turn affected the Iranian foreign exchange market.