Slight Gains in Currency Rates

EghtesadOnline: Forex rates in Tehran were rather stable on Sunday compared to the past several weeks as traders exercised extra caution due to the Central Bank of Iran’s presence in the market.

News ID: ۷۵۱۱۱۶

28 September 2020

According to Eghtesad News website, one dollar was sold at 289,600 rials – up 2,600 rials or 0.89%. Euro also gained 1,160 rials, or 0.34%, for the day to be priced at 335,170 rials.

Bank-affiliated moneychangers too increased the dollar and euro prices by 500 rials to 287,000 rials and 333,000 rials, respectively.

Rapid surge of the greenback halted late on Saturday after touching 292,000 rials in early trade. It retreated to 288,000 rials to be almost on par with rates quoted in the earlier session.

The Emirati dirham, influential in setting the dollar rate in Iran, got close to 80,000 rials. Most buyers seemingly are waiting for a possible decline in currency rates in the coming days. Currency rates have almost doubled compared to six months ago.

Experts believe that traders are obviously skeptical about the dollar crossing over 290,000 rials due to the likelihood that the CBI would boost the supply side to pull down rates.

The central bank reportedly is planning to increase supply in the secondary market (known as Nima) to curb forex demand in the free market.

Unofficial sources Sunday claimed that three million dirhams were injected in the secondary market on Saturday.

Nima is an online platform affiliated to the Central Bank of Iran where exporters sell their overseas currency income and companies buy for importing goods, machinery, equipment and raw materials.

Rates in Nima are lower. On Sunday a dollar was selling for 229,510 rials in the secondary market and bought for 286,900 rials.

Secondary Market

The CBI Governor Abdolnasser Hemmati, last week talked about the need to maintain a balance in supply and demand in the key secondary market.

Referring to efforts to bring back assets and reserves frozen overseas, Hemmati said the bank has measures to boost the secondary market.

The CBI on Thursday warned unofficial currency traders to avoid “creating turbulence and negative atmosphere in the currency market. It said “currency trade should be conducted via authorized banks and exchange shops within the legal framework” announced by the central bank.

Due to tough economic sanctions imposed by the United States, Iran cannot access billions of dollars from oil and other non-oil exports.

Gold Coins Rise

The Emami gold coin registered a meager increase in price on Sunday. It was traded at 135 million rials after gaining 0.37% compared to Saturday.

Bahar Azadi gold coin was traded at 127.3 million rials, up 0.63% or 800,000 rials compared to the previous day's close.

Half Azadi gold coin was up 1.39% or 1 million rials  and was quoted at 73.1 million rials.

The quarter coin took a big jump and was priced at 43.5 million rials, 3.5% or 1.5 million rials higher than the day earlier.