Gold and Forex Make History in Tehran

EghtesadOnline: Gold and foreign currency in Tehran posted strong gains in post-holiday trading on Saturday jumping to record highs.

News ID: ۷۵۱۲۳۴

11 October 2020

Emami gold coin jumped 7.5 million rials, or 4.82%, to an all-time high of 155.5 million rials. It traded at 148 million rials on Wednesday, Eghtesad News website reported.

Half-Bahar Azadi gold coin rose by 4.24% on Saturday to 82.5 million rials. It had registered 1.27% decline on Wednesday after six months of systematic increase.

The dollar was quoted at 307,500 rials in the open market, up 3.41% compared with the previous trading day. Bank-affiliated moneychangers preferred not break the 300,000-rial barrier and offered the greenback at 299,000 rials.

The euro gained 2.01% and was priced at 358,170 rials while the British pound added 9,820 rials to 395,590 rials.

Likewise, the Turkish lira and Emirati dirham recorded nearly 3.5% increase to be quoted at 39,320 rials and 84,500 rials, respectively.

The latest hikes come on the heels of fresh sanctions unleashed by the US Treasury Department on Thursday against Iran’s financial sector. The move panicked investors adding to the deep uncertainty in domestic financial markets.

Dismissive

The central bank as well as experts have dismissed the new US move as bluster designed more to appease the voter base of the beleaguered Donald Trump than having economic impact on Iran’s economy.

“Some of these banks transfer money for food and pharmaceuticals and foreign lenders were previously given waivers and permits to work with them,” Abdolnasser Hemmati, the CBI governor has said.

The US Treasury Department on Thursday imposed fresh sanctions against 18 Iranian banks aiming to totally cut off the country from the world's financial system and choking off the government’s shrinking revenues.

Mohammad Keshti-Aray, deputy head of Tehran Gold and Jewelry Union, says the international price of the yellow metal is the leading factor pushing up forex and gold prices in Iran.

US gold futures settled at $1,926.20 per ounce up to $31.10 on Friday. For the week, it gained about 1%. On the other hand, spot gold gained 1.8% to settle at $1,928.31.

The US dollar plunged heavily on Friday, as it headed towards its second consecutive weekly loss over higher commodity prices. The dollar Index, which tracks the greenback against a basket of other currencies, edged down 0.68% to 93.012.