Forex Back on Fast Track in Iran

EghtesadOnline: Foreign exchange rates in Iran’s free market climbed again on Monday after a lull in the past two sessions as the US dollar clawed back losses in previous trade.

News ID: ۷۵۱۱۹۲

06 October 2020

The greenback surged to 293,000 rials in the unofficial market, more than 1,000 rials higher than Sunday’s trade to post 3.5% growth. It had lost more than 12,000 rials on Sunday and was sold at 284,000 rials after reaching an all-time high of 300,000 rials last week.

The euro was up by 8,960 rials and bought 340,000 rials or up 2.6% compared to Sunday while the UK pound sterling rose 2.5% to be quoted at 375,000 rials.

The UAE dirham, whose price is influential in determining currency rates in Tehran, bounced back above 80,000-rial level and was changed at 81,000 rials.

In the early hours of Sunday trade, the Emirati currency had retreated below the critical 80,000-rial sending a signal to other foreign currencies.

Spike in rates in the unofficial market again widened the gap with those quoted by exchange bureaus affiliated to the Central Bank of Iran.

Mell Exchange, affiliated with the state-owned Bank Melli Iran, quoted the dollar at 281,030 rials – up 10,400 rials or 3.27%. The price gap with the open market was 12,000 rials.

CBI-licensed moneychangers usually tend to keep pace with open market rates, but so far have refused to push up the present prices higher even after the dollar hit record-high of 300,000 rials last Thursday.

Observers say the regulator’s resistance to increase the prices further can be interpreted as the central bank’s reluctance to recognize higher rates.

Not Left Behind

Soon after currency rates shot up the yellow metal did not waste time. Price of the Emami gold coin increased by 8 million rials in one day and changed hands for 145 million rials, positing 5.5% growth.

It had lost more than 8.5% a session earlier after reaching a record high of 152 million rials last week, eghtesadnews reported.

Bahar Azadi coin gained one million rials to fetch 136 million rials and a gram of 18-karat gold was traded at 13.38 million rials, up 2.85% compared to Sunday.

In international markets gold inched up on Monday as the dollar weakened, although gains were limited as news that Donald Trump, the highly controversial US president, receiving treatment for Covid-19, could be released from hospital boosted risk sentiment, Reuters reported.

Spot gold was up 0.1% at $1,900.46 per ounce by 0954 GMT while US gold futures were down 0.2% at $1,904.50.