Foreign currencies posted considerable growth in Tehran’s free market with the US dollar quoted at 291,800 rials on Tuesday.
According to Esghtesadnews.com, the dollar crossed the psychological 290,000-rial barrier gaining 6,100 rials. The greenback was tagged at 257,050 rials at authorized exchange shop.
Market observers say the Central Bank of Iran is trying to reduce prices in the free market by lowering rates in authorized shops.
The euro surged to 307,470 rials, up 2.1% while the UK pound sterling climbed 2.6% to buy 365,200 rials. The UAE dirham was 1.65% or 1,300 rials higher at 80,200 rials.
Some analysts say recent reports about the decline in Iran's oil export has negatively impacted forex prices as traders are anticipate further jump in prices.
Meanwhile, the government is hopeful about the freeing of Iran's assets blocked overseas and the possibility higher oil sale revenue.
Tehran has held talks with countries in which forex assets are held namely South Korea, Oman, Iraq, China and Japan. Iran has more than $7 billion from oil exports locked in two South Korean banks -- the Industrial Bank of Korea (IBK) and Woori Bank -- due to the 2018 US economic blockade.
This was confirmed earlier by the Foreign Ministry spokesman in Tehran, Saeed Khatibzadeh.
“The operational framework for freeing a significant amount of the blocked money has been prepared and Tehran will soon have access to it,” he said.
In related news, the CBI said Monday currency trade in the secondary market, known locally as Nima, reached almost $4 billion from the beginning of the fiscal year in late March to May 9. The Central Bank of Iran said that that was double the amount from the same period last year.
Gold also was higher in Tehran on Tuesday, mostly under the influence of rising forex rates.
The popular Emami gold coin increased slightly by 0.92% or 1.25 million rials to fetch 134.95 million rials. Half Bahar Azadi coin climbed 0.02% to reach 74.12 million rials and one gram of 18-karat gold was worth 13.2 million rials, up more than 91,000 rials, according to the Tehran Gold and Jewelry Union website.
In global markets, gold prices firmed on Tuesday as a decline in US treasury yields offset pressure on greenback-priced bullion from sustained strength in the dollar, Reuters said.
Spot gold was up about 0.1% at $1,854.91 per ounce and US gold futures were down 0.2% at $1,854.10.
