Forex, Gold Rise Again in Tehran

EghtesadOnline: The US dollar extended gains against the rial on Thursday, comfortably breaking past the resistance level of 240,000 rials after falling briefly near the critical level.

News ID: ۷۸۵۵۶۶

18 July 2020

The greenback closed Thursday at 243,000 rials, up more than 1.6% compared to 239,000 rials a session earlier.

Similarly, the euro rose slightly to 272,000 rials, gaining more than 0.7%, or 2,000 rials, and the UAE dirham remained unchanged at 65,500 rials.

Moneychangers affiliated to the Central Bank of Iran also raised  rates after resisting for few sessions as price arbitrage with the open market widened.

Bank-based exchangers sold one dollar for 231,020 rials on Thursday, up 1,000 rials compared to a day earlier. A euro fetched 253,930 rials, up 0.5% daily, according to the Tehran Gold and Jewelry Union.

Keeping abreast with parallel markets, major currencies have recorded big gains in recent weeks. The USD strengthened 50% against the national currency in a little less than four months since the fiscal year began in March. The greenback jumped  7.6% in the last business week alone.

The currency crisis has been attributed to shortage of supply and exporters’ failure to return their export income to the country’s trade cycle.

In light of the steep decline in forex earnings due to the tough US sanctions, the government has put exporters under pressure to bring back their currency earnings.

The CBI has given an ultimatum to exporters to return their earnings of the past two years by the time the current calendar month is out on July 21. It also has announced a new incentive package for repatriation of export earnings.

The gold coin also extended its winning streak on Thursday with the Emami gold coin rising 1.1 million rials overnight to reach 109.08 million rials, according to the TGJU. Bahar Azadi gold coin gained 480,000 rials and sold for 102.48 million rials.

Gold rose Friday in world markets and was headed for its sixth consecutive weekly gain as surging coronavirus cases fueled demand for safe havens. Spot gold climbed 0.5% to $1,805.43 per ounce, Reuters reported.