On Sunday, the central bank said it will soon raise the maximum amount of currency that can be sold to an individual annually from 2,000 euros ($2,176) to 5,000 euros ($5,439) in an apparent effort to show it has no shortage of currency. “Today the central bank faces no limitations in terms of currency and gold reserves, and the main reason behind the currency fluctuations is media hype and psychological operations in the society,” Farzin said on Saturday.Īs the rial went into another freefall on Saturday, the central bank claimed that 300 million euros ($326m) of Iran’s money in Iraq had been received, despite US sanctions, and injected into the market. His replacement, Mohammad Reza Farzin, had vowed to artificially keep the rate of the currency at 285,000 rials against the dollar for imports of essential goods in an effort to keep prices stable during a 40 percent inflation rate. On Sunday, the United States dollar went past the 450,000-rial mark for the first time on the open market.įormer Central Bank of Iran governor, Ali Salehabadi, had been sacked after a previous rapid depreciation of the rial in late December that saw it slump to more than 440,000 against the greenback at the open market. You can sign up to receive it directly here.Tehran, Iran – Iran’s currency has reached an all-time record low amid increasing tensions with the West and the unrest gripping the country. But banks often refuse to sell their dollars at the artificially low rate, which has heightened doubts about the currency's stability.Įach evening at 1830 UTC, DW's editors send out a selection of the day's hard news and quality feature journalism. The official government-set exchange rate is 44,070 to the dollar, compared to 35,186 on January 1. Iran's president hit back at Trump's sanctions, by threatening to close the Strait of Hormuz, a shipping lane through which 20 percent of the world's oil passes. Read more: Iran announces plan to circumvent US oil sanctions The central bank, meanwhile, has blamed "enemies" for the lack of confidence in the currency and a rapid rise in the prices of gold coins. Meanwhile foreign exchange restrictions have been eased to combat black market trading. Last week, the government replaced the country's central bank governor Valiollah Seif, blaming his policies for exacerbating the rial's fall. It has also triggered street protests and a public outcry over alleged profiteering and corruption. The economic uncertainty has forced more Iranians to turn to dollars as a safe way to store their savings. Iran is also experiencing a deep economic crisis which is likely to worsen if its oil exports fall by as much as two-thirds by this year, due to the revived measures. Read more: US rejects EU request for Iran sanctions relief The US has also told countries they must halt imports of Iranian oil from Nov. Washington is to reimpose its full range of financial measures in two stages on August 6 and November 4, forcing many foreign firms to cut off business with Iran. The currency started its latest freefall a month before US President Donald Trump pulled out of the 2015 Iran nuclear deal, in which six world powers lifted sanctions on Tehran in return for the curtailment of its nuclear program. The rial has lost half its value against the dollar in just four months, having broken through the 50,000-mark for the first time in March. Other websites said the dollar was exchanged between 108,500 and 116,000 rials. The Iranian rial fell to 112,000 to the dollar from 98,000 a day earlier on the thriving currency exchange black market, according to Bonbast, one of the most reliable sites for tracking the currency. Iran's currency hit a record low on Sunday of 100,000 rials to the dollar as concerns grow of a deepening economic crisis due to the imminent return of full US sanctions.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |