Forex Rates Unrestrained in Tehran Market

EghtesadOnline: Major currencies continued to rise Wednesday for five successive sessions with the US dollar moving closer to 240,000 rials in Tehran’s open market but sopped near the threshold.

News ID: ۷۵۰۴۴۹

16 July 2020

The greenback closed at 239,000 rials, surging almost 1% compared to the session earlier.

One euro bought 268,000 rials surging by 1,000 rials and the UAE dirham was 1% higher at 65,500 rials.

The USD has grown more than 12,000 rials against the rial in  the past three sessions, causing the price difference with moneychangers affiliated to the Central Bank of Iran to widen further.

Bank-based moneychangers sold one dollar for 229,490 rials on Wednesday, up 2,000 rials, or 0.9%, compared to the day earlier. A euro fetched 252,470 rials, up 0.8% daily, according to the Tehran Gold and Jewelry Union.

Turbulence in the currency market has become a serious of concern among the public and desperate government officials say they making concerted efforts to find a way out of the crisis. But forex rates keep climbing in total disregard of what the CBI and senior economic officials say.

Mohammadreza Pourebrahimi, head of the Majlis Economic Commission says “controlling volatility in the currency market” was atop Monday’s agenda of the High Council of Economic Coordination, an ad hoc decision-making body comprising the heads of three branches of power.

Pourebrahimi told state TV issues at the meeting were mainly about ways to facilitate “exporters’ forex repatriation” and “access the CBI’s currency holdings overseas”.

Observers say the steep decline in the supply of foreign currency to the secondary market (Nima) is the main reason behind currency rates ascending at historic speed

Nima is a trade platform were exporters sell their export earnings and import companies buy.

Gold Unchanged

Gold coin prices remained largely stable on Wednesday.  According to the TGJU, the Emami gold coin dropped slightly by 0.05%, or 50,000 rials, to reach 107.88 million rials. Bahar Azadi gold coin gained 1 million rials and changed hands for 102 million rials, up 1% compared to Tuesday’s close.

Gold inched higher in global markets, holding firm above the key $1,800 level, as worries over surging coronavirus cases and simmering China-US tensions lifted demand for the safe-haven metal, Reuters reported.

Spot gold was up 0.1% at $1,809.41 per ounce for the day. US gold futures were steady at $1,813.70.