Forex Rates at New Record Highs

EghtesadOnline: The US dollar jumped to an all-time high of 320,000 rials on Thursday, despite the central bank’s move to inject currency in the forever rising market.

News ID: ۷۵۱۲۹۶

19 October 2020

The dollar finished the week at 320,000 rials in Tehran’s open market, up 3,200 rials or 1%, compared to the previous Thursday. The currency has gained 4% or 12,500 rials since the beginning of the last trading week.

One euro was worth 372,370 rials, up 2,490 rials compared to Wednesday and the UK pound sterling soared to 412,500 rials. Both the euro and pound posted 6.1% and 2.93% increase, respectively, last week.

Each Emirati dirham was quoted at 89,000 rials on Thursday, Eghtesadnews website reported.

Following weeks of sharp increases in exchange rates, the Central Bank of Iran came up with two moves to control the market. Earlier in the week it said it was pumping $50 million in the chaotic market every day to stabilize rates. As such, $230 million has been injected into the market since last Monday.

The interventions, however, so far have had little or no meaningful effect on the market. The CBI also raised the ceiling for purchasing foreign currency by exchange shops and banks in the regulated market to half a million dollars a day.

Most moneychangers have suspended trade reportedly due to political risks and possibly further turmoil in the forex market in the coming weeks, the Persian-language news website aid.

Bank-based moneychangers quoted the dollar at 317,000 rials, up more than 2,000 rials and the euro fetched 372,500 rials at bank-affiliated exchange shops on Thursday, up 2,500 rials compared to the previous day's close.

Gold Coin

Gold prices, which are almost always influenced by the domestic forex market rather than the international bullion rates, surged on Thursday.

The Emami gold coin rose 3 million rials (or 1.82%) and was worth 164 million rials on Thursday.  Half Bahar Azadi gold coin closed the week at 91 million rials, marking 3.29% or up 3 million rials compared with Wednesday's close. It registered 8.7% increase over the last week.

Each quarter Bahar Azadi gold coin was traded at 60.5 million rials 0.8% higher than Wednesday. The quarter coin, however, recorded a growth of 11% in the previous week.