Economy, Business And Markets

Further Hike in Unified USD Rate

Further Hike in Unified USD Rate Further Hike in Unified USD Rate

The Central Bank of Iran has increased the US dollar's exchange rate for the fourth time since it unified the rate on April 9. 
The move is a further sign that CBI is delivering on its promise of allowing the inflation rate to influence the forex rate. 
CBI announced the rate at 42,110 rials on Saturday from 42,090 on Thursday. The rate was first raised from the unified rate of 42,000 rials to 42,050 on Monday, the central bank's website reported. 
A similar attempt to unify the exchange rate  in 2012 fell flat when the rate was fixed at 12,260 rials without due attention to market mechanisms. Although analysts also object to the current rate as unrealistic, its flexibility is expected to appease pro-market forces.
The forex unification came on the heels of a sharp slide in the value of rial.


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