Its latest ascend started last Saturday and raised new concern among the public as many traders expect the rate to increase further and beyond 200,000 rials.
A report in the Persian-language economic newspaper Donya-e- Eqtesad referred to the jump in the price of UAE dirham as the key factor leading to the rise in price of the American currency. According to the report, the dirham's price has reached an all-time high of 51,000 rials.
The Emeriti currency is important in determining currency rates in Tehran because the Persian Gulf Arab state is a traditional hub for Iranian import and export.
Other major currencies gained against the rial during the week. The euro increased from 198,830 rials on Saturday to 203,520 rials on Thursday.
Following similar trends in the open market, moneychangers affiliated to the Central Bank of Iran also increased their rates to help reduce price arbitrage.
Bank-affiliated money changers tagged the dollar and euro at 18,206 rials and 201,700 rials, respectively.
Responding to the unprecedented surge in currency prices, CBI Governor Abdolnasser Hemmati again tried to reassure the public that the “real value” of the dollar is “definitely lower” considering economic, political and psychological variables.
“Stability in the real value of [foreign] currencies is important for the CBI,” he wrote in his Instagram account on Friday.
Referring to the CBI’s successful efforts in the past two years to control forex rates, Hemmati said “the CBI will again use all its capacity to restore market stability.” He did not provide details.
He warned currency dealers and speculators that they should be wary of “negative signals” coming out form the dire psychological climate created by reports that the International Atomic Energy Agency would soon pass an anti-Iranian resolution.
The IAEA passed a resolution on Friday calling on Iran to fully cooperate with the UN agency in implementing its NPT Safeguards Agreement and Additional Protocol and satisfy IAEA requests.
Hemmati also linked the turmoil in the currency market partly to currency shortage due to the impact of coronavirus on import-export, noting that the CBI would secure the currency needed for importing goods.
The senior banker pointed to billions of dollars in export earnings that are to be repatriated in the coming weeks, expressing hope that “this will have apositive impact on the forex market”.
Gold Soars
Gold coin prices, highly impacted by currency rates, rose further on Thursday with the Emami gold coin selling for 78 million rials, the highest price ever from the time records have been kept.
Bahar Azadi gold coin was worth 75.5 million rials, and one gram of 18-karat gold fetched 7.65 million rials.
In the global markets gold gained on Friday as a rise in the Coronavirus cases raised concerns over a second wave which could compel governments to implement more lockdowns.
Spot gold was up 1% at $1,740.03 per ounce while US gold futures rose nearly 1% to $1,747.90 per ounce.
Spot prices reached their highest since 2012 last month at $1,764.55.