Dollar at 11-Week High

EghtesadOnline: Foreign exchange rates continued to rise on Tuesday with the dollar crossing the 25,000-rial range -- the highest in 11 weeks.

News ID: ۷۸۶۵۶۳

30 June 2021

The dollar was sold at 251,300 rials in Tehran's open market, up 1.55% compared to Monday when it bought 247,500 rials after rising 1.37%, Eghtesadnews reported.

The dollar uptrend started in late May. It has jumped 7.4% in  four weeks. The euro also posted an increase of 1.2% or 3,570 rials and was quoted at 297,709 rials. The UAE dirham ended  the day slightly higher and was worth 69,000 rials, up 1.15%.

Market analysts say concern over the outcome of ongoing diplomatic efforts in Vienna to salvage the Iran nuclear deal has pushed up forex rates in recent weeks.

Melli Exchange Company and moneychangers affiliated to banks sold the dollar for 244,290 rials on Tuesday, up 1.98% compared to the previous day. Bank-affiliated moneychangers sold the euro for 286,700 rials, up 1.27% compared to Monday.

Regulated Market

Price of the greenback at the CBI's regulated market increased by 1.98% to 244,290 rials. Iran’s regulated market is a network of banks and certified moneychangers under CBI auspices and handles wholesale currency trade.

The market is seen as a government measure to restore some discipline to the chaotic currency market. It was created to organize an open and transparent system where currency is traded via an electronic platform. Central bank officials say this market has delivered in controlling the currency market.

"The regulated market has been successful in disciplining the currency market because the number of illegal deals has considerably decreased in the past two years," Akbar Komijani, the CBI vice governor, was quoted as saying in a meeting with the Regulated Market Company officials on Tuesday.

In April 2018 a company was created to supervise the regulated market.  It is a private enterprise comprising major stakeholders, namely the Association of Private Banks and Credit Institutions, Association of Bureaux de Change Operators, representatives of public banks, Iran Fara Bourse (the junior market for securities and other financial instruments).

It managed dollar deals worth $1 billion in two years. Deals worth € 176 million were made via the regulated market,  Komijani said.

Gold Higher

Gold coin prices also increased on Tuesday under the influence of higher forex rates in Tehran. The Emami Gold Coin posted a 0.7% growth compared to Monday's close to be traded at 108 million rials.

Half Bahar Azadi Gold Coin gained 0.86% during the day and was sold at 58 million rials while the Quarter Bahar Azadi Gold Coin was priced at 37.5 million rials, up 2.26% or 1 million rials compared to the previous day's close.

However, gold prices eased on Tuesday in the international market. Spot gold was down 0.2% at $1,775.42 per ounce and US gold futures fell 0.2% to $1,776.40.