Tehran Forex, Gold on a Tear

EghtesadOnline: The ascending order of the US dollar and euro continued on Wednesday, being sold respectively at 178,000 rials and 194,000 rials in Tehran's open market.

News ID: ۷۵۰۰۹۴

21 May 2020

The greenback was traded 0.9% higher than the previous day's close while the European currency marked an increase of 1.03%.

Bank-affiliated exchange shops sold the dollar and euro at lower rates -- 172,000 rials and 187,000 rials, respectively.

Governor of the Central Bank of Iran Abdolnasser Hemmati on Monday sought to reassure the public about the regulator’s efforts to restore stability to the forex market and urged businesses to support CBI plans.

In his view the current state of the forex market is not as complicated as it was in the summer of 2018. "Reimposition of [US] sanctions then unleashed chaos in most markets. However, with appropriate measures we managed to restore calm to the market and bring down forex rates."

Following close on the heels of the high currency market as usual, domestic gold prices also climbed on Wednesday.

Emami gold coin gained 1.45%, or 1.09 million rials and was offered at 74.85 million rials. Gold prices in Iran are always influenced more by the domestic forex market and less by the international bullion market where too prices are rising as the coronavirus continues to hammer economies in ways not seen in a century.

According to Reuters, gold prices rose on Wednesday as fears of prolonged global economic weakness leapt to the fore, pushing aside premature excitement about a possible coronavirus vaccine, and prompted investors to seek safe-haven bullion.