Forex Shoots Higher in Tehran Market
EghtesadOnline: The US dollar surged above the critical 170,000-rial level on Sunday at the moneychangers affiliated with the Central Bank of Iran.
The moneychangers traded the dollar at 170,230 rials, up 2,300 rials, or 1.4%, compared to Saturday’s close.
Each euro at the CBI forex bureaus were sold for 184,200 rials, 1.2% higher than the rates quoted Saturday, according data at Tehran Gold and Jewelry Union website.
The spike in currency rates is construed by market observers that the central bank has accepted these rates and is trying to reduce the price gap with the open market.
The greenback was traded as high as 174,800 rials at Tehran’s open market on Sunday, above the 172,000 rials a day earlier. Each euro fetched 187,000 rials and the British pound was priced at 208,000 rials.
Currency rates in the secondary foreign exchange market were also of the ascending order The CBI-monitored market, known locally as Nima, is a venue where exporters offer a portion of their overseas currency revenue and import companies buy it.
USD hit the all-time high at Nima on Saturday and sold for 161,480 rials before retreating back to 156,885 rials Sunday.
Hike in currency rates at Nima is considered a positive development as it helps reduce the price arbitrage between the secondary and the open markets.
This should also encourage non-oil exporters to increase supply, which in turn, helps the CBI address forex demand from importers.
Domestic gold market extended a winning streak on Sunday driven by soaring currency prices. The Emami gold coin climbed more than 2% to 73.18 million rials, according to TGJU website. Bahar Azadi gold coin sold for 72 million rials – up 1.4% compared to the previous day.