Forex rates declined on Wednesday in Iran as positive reports about Iran’s access to its overseas frozen assets weakened sentiment in the currency market.
The dollar lost more than 1.2% or 3,000 rials to retreat to 244,600 rials in the open market. The greenback was relatively stable and traded around 249,000 rials in the past two weeks.
Market observers say currency dealers and speculators were perturbed about reports that the US is to allow Iran access to a portion of its frozen assets in South Korea and Japan.
The American newspaper Washington Free Beacon reported Wednesday that the US would waive sanctions on Iran's oil trade so that the country can access frozen funds from South Korea and Japan.
The waiver, signed by Secretary of State Antony Blinken, allows Iranian money locked as a result of American sanctions to be freed without violating the US laws.
In recent weeks the currency market has been impacted by positive reports about progress in talks to revive Iran’s nuclear deal.
Iran’s Foreign Ministry spokesman Saeed Khatibzadeh said Tuesday talks are in the final phase. The accord, officially called the Joint Comprehensive Plan of Action (JCPOA), was abandoned by former president Donald Trump in 2018.
Other major currencies also declined on Wednesday. The euro fell more than 2% or 5,960 rials to be traded at 288,819 rials, the UK pound sterling lost 1.84% to buy 337,800 rials. The UAE dirham was down more than 1% to be quoted at 66,710 rials.
Exchange bureaus affiliated to Central Bank of Iran tagged the dollar at 245,700 rials down 0.7% or 1,800 rials compared with the session earlier.
In the regulated wholesale currency market, the greenback was worth 240,000 rials, down 1.14% or 2,730 rials compared to Tuesday. The market is a network of banks and certified moneychangers under CBI auspices and deals in wholesale trade.
Gold Falls
Gold prices declined sharply in the domestic bullion market following the trend in the currency market. The popular Emami gold coin retreated to 104.7 million rials on Wednesday, declining 1.35 million rials or 1.3% compared to the earlier session.
Half Bahar Azadi gold coin was unchanged and was worth 56 million rials and one gram of 18-karat gold sold for 10.48 million rials, down 0.5%.
Gold prices rose Wednesday in international markets after robust US inflation numbers lifted the metal’s appeal as an inflation hedge, although gains were kept in check ahead of the US Federal Reserve Chair Jerome Powell’s testimony as early tapering bets rise, Reuters reported. Spot gold was up 0.4% at $1,814.90 per ounce, as of 1030 GMT. US gold futures gained 0.3% to $1,815.
