Currency, Gold Coin Prices Rise in Tehran Market

EghtesadOnline: Foreign exchange and gold coin prices jumped on Saturday as the trading week opened in an overcast Tehran.

News ID: ۷۴۹۳۶۹

05 January 2020

Almost all foreign currencies gained against the rial, according to Tehran Gold and Jewelry Union website. Euro, with 4.11% increase, saw the highest daily growth and sold for 148,360 rials.

The US dollar and Japanese yen also made significant gains. The greenback was priced 133,330 rials, nearly 3% higher than Thursday's close. The Japanese yen shot up 3.5% to reach 4,280 rials, Financial Tribune reported.

The UAE dirham and Turkish lira also registered 2.8% and 2.5% growth respectively.

Reports say street moneychangers were trading the dollar and euro at higher prices. A moneychanger demanded 134,500 rials for one dollar.

The hike in prices comes amid escalating political and military tensions in the strategic region. Closure of authorized moneychangers on Friday also created extra space for street merchants to gouge prices.

The CBI keeps an eye on currency rates largely through its affiliated moneychangers, including bank-affiliated shops.  However, experts say the CBI's permanent supervision over the market in recent months has made it less likely for rates to rise uncontrollably.

"Street dealers are certain that the Central Bank of Iran will intervene in the market…moreover middlemen know that large deals are no more an option to challenge and bemuse CBI intervention in the market," Majid Shakeri, a market analyst, was quoted as saying by Eranico.

Meysam Radpour, an economist, also predicted a   stable forex market by the yearend (March). "Swings in currency prices are transient, as they are caused by short-term factors”.

"Exchange rates will regain stability soon, since no fundamental factor has impacted the market in recent weeks," he told IRNA.

Gold Coins Up 4%

Cold coin prices also gained substantially on Saturday. Emami gold coin was worth 48.95 million rials, up 4.68% compared to Thursday's close.

The price of Bahar Azadi gold coin also increased and was quoted at 48.40 million rials -- 4.3% higher than previous day.

Half Bahar Azadi and Quarter Bahar Azad gained 3.8% and 4%, respectively.

Rising tensions in the region, surge in forex rates in domestic markets and increase in gold prices in international markets are among the major reasons pushing up gold prices, Mohammad Keshti Aray, head of Iran’s Specialized Gold and Jewelry Commission, told ILNA.

Gold prices in global markets hit a high of $1,553.20 an ounce, according to Reuters. US gold futures settled 1.5% higher at $1,552.40.