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07/31/18
Iran's claws on the foreign exchange market suffer losses after the record fall
Source: Press TV
The Iranian rial rebounded on Tuesday after reaching a historic lows.
the national currency loses nearly two-thirds of its value since the beginning of
year. It's strengthened by 13.72% against the dollar to 109,000 after hitting
the record of more than 120,000 on the unofficial market Monday
Iranian dollar pursuing: "Please stop, I'm out of breath."
Dollar: "But I can still go."
cartoon by Taravat Niki, Iranian daily Ghanoon
The euro was trading at 117,900 rials, losing about 20,000 rials
He came after the government is committed to unveiling a new package to regulate the
forex market that has seen trade shaken since May when US President Donald
Trump announced plans for new sanctions on the Islamic Republic.
The new governor of the Central Bank of Iran, Abdolnaser Hemmati, on Monday
attributed the volatility of the currency market to the enemies, saying that they had come out
destroy the country's property and cause public disappointment.
Tehran police chief General Hossein Rahimi said 35 people had been arrested
in recent days to disrupt the market forex and gold coins.
Earlier this month, Rahimi said police arrested a man and his accomplices
for collecting two tons of gold coins over several months in order to
manipulate the market.
"The forces of the three branches of power and the forces of order
determined to deal with the disruptive of the currency and coin market, "he said.
Tuesday
He said that dealers are considered among the main agents of the turmoil, which are
exacerbate market volatility by setting prices. "They were served
the last warning to stop their fraudulent maneuvers on the market ", Rahimi
The devaluation of Rial presented to the government of President Hbadan Rouhani
In April, the government lowered the official value of the rial in relation to
dollar in order to eradicate the free currency market, official unifier and
free market rates at a single value of 42,000 to a dollar.
In doing so, the government sought to create a controlled depreciation of
to support the export sector and attract hard currency in
country to offset the fallout from the reimposition of Trump's sanctions.
When the plan came into force, the police were deployed to monitor currency exchanges.
shops and stop any person trading foreign currency at higher prices.
However, the strategy went against it as it generated an underground network of
the forex sellers which caused a further depreciation of the national currency.
This became an Internet platform that the government had launched to
allow eligible importers to apply for a hard currency at the lower official rate
did not work.
According to Mohammad Hossein Barkhordar, a member of the House of
Trade, Industries, Mining and Agriculture, No Importer Could
register a single order at the rate of 42,000 rials for the US dollar to date.
As a result, many Iranian companies and those who hope to travel or study abroad
who were desperate for the currencies had to go back to the black market
that the government ban had created and the result was amazing
depreciation of the rial.
A sharp decline in the rial resulted in higher inflation rates as consumer prices rose.
It has also caused a wave of listings of new businesses having access to
These new companies started importing high-demand products with dollars at a price
the rate of 42,000 rials and sell them at inflated prices for profit.
The situation triggered a wave of panic buying by ordinary Iranians, who
fearing a further devaluation of the rial in the midst of market chaos, has begun
converting their money into more reliable badets.
On Wednesday, Hemmati replaced Valiollah Seif as Iranian banker
the pressure has increased on the government to prevent the situation from coming out of
The government has also launched a forex secondary market where importers and
exporters are expected to reach a consensus on the dollar rate.
It may be an antidote to other shady companies, especially after
media report Wednesday that petrochemical companies that provide a constant
the supply of foreign currency is complicated with the private exchange offices and
fixed price.
… Payvand News – 31/07/18 … –
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