Iran: Currency, Gold Descend After Big Leaps

EghtesadOnline: Foreign exchange rates and gold coin prices fell on Saturday following Central Bank of Iran measures to moderate rates after a week of high volatility.

News ID: ۷۴۹۷۷۶

01 March 2020

The US dollar that had leaped 9.1% the last week, lost 5.5%, or 8,000 rials and was worth 149,000 rials in Tehran's open market. The euro's decreased by 4.66%, to reach 162,000 rials. Emirate dirham, Turkish lira and Chinese yuan also recorded 4.25%, 5.5% and 4% decline, respectively, according to Financial Tribune.

Emami gold coin started the week a 6.56%, or 3.72 million rials, drop to be traded at 56.72 million rials, according to  data from the Tehran Gold and Jewelry Union. The coin had seen 12.1% increase over the past week, reaching an all-time-high of 61 million rials last Wednesday.

In international markets also the precious metal posted its biggest single-day slide since 2013. The yellow metal bottomed at $1,564, wiping out more than two weeks’ worth of gains.

Forex rates went through a slowdown in the past few days, according to the Persian-language newspaper Donya-e-Eqtesad weekly market review. This is while traders were expecting further growth in rates, due to the coronavirus spread in recent weeks.

Bank-affiliated exchange shops -- the CBI arms in the currency market -- started increasing rates on Wednesday, bringing it closer to those in the open market. Many traders expected that implementing such measures would lead to a drop in rates in the coming days.

Melli Exchange, affiliated with Bank Melli Iran, sold the dollar at 149,000 rials on Saturday.

Last week and in response to fluctuations in the forex market, Abdolnasser Hemmati said the CBI will not waver or be pushed into excitement due to the turbulences visiting the already fragile foreign exchange market.

"Some market players are trying to undermine currency market stability…Our response to market volatility will be premised on sagacity. We will continue to use our tools wisely to curb rent-seeking and stabilize the market," he was quoted as saying.

Donya-e-Eqtesad also reported that one of the major exchange shops had resumed operations in secondary forex market, known as Nima, on Wednesday, which was interpreted by the newspaper as sign of the coming decline  in currency rates.