The dollar closed at 232,000 rials in Tehran’s open market, rising more than 13,000 rials, or 6%, compared to the previous session.
The greenback lost 18% during the past week after reaching an all-time high of 260,000 rials last Saturday.
Likewise, the euro climbed to 268,000 rials, up 12,000 rials, and the UAE dirham was tagged at 62,950 rials, 4,000 rials higher than Thursday’s close.
Foreign currency rates jumped against the rial in early weeks of new Iranian calendar year (in March 2020), reportedly after the coronavirus pandemic halted trade between Iran and neighboring countries and adversely affected the forex supply.
The pandemic understandably caused many exporters to delay selling their export revenue to the Nima market, the main currency platform through which exporters sell their overseas earnings and importers buy.
Shortage of foreign currency is seen as the main reason behind the spike in rates in Nima. Rates soared by 21% from 204,000 rials on July 1 to nearly 260,000 rials on July 18. Currencies declined temporarily after the CBI stepped in and tried to stabilize the market, pushing the dollar rate down to as low as 210,000 rials.
Weaker rates were reportedly due to improved supply.
The rate at exchange-bureaus affiliated to the CBI was 203,000 rials to the dollar.
Gold Higher
Gold prices gained on Saturday amid significant hike in precious metal prices in global markets and soaring currency rates. The Emami gold coin rose to 107.2 million rials for the day, gaining 5.2 million rials, or 5.1 over the previous session close. The benchmark Bahar Azadi was worth 96.98 million rials, up 1.2% compared to the earlier session, the Tehran Gold and Jewelry Union said.
Gold resumed its march toward $1,900 on Friday as souring US-China relations added fuel to a rally towards a nine-year peak driven by fears over the economic hit from the coronavirus pandemic.
Spot gold was 0.3% higher at $1,892.81 per ounce, having hit its highest since September 2011 at $1,897.91 on Thursday, Reuters reported.