Coin Price Surpasses 5 Million and Dollar Crosses 14,000 Toman Threshold
The dollar exchange rate in Iran’s foreign currency market has risen again. The increase in the dollar’s value is occurring at a time when the Central Bank governor had spoken of stagnation in the currency market. The price of each new design gold coin has also crossed the 5 million toman mark.
Escalating tensions between the Islamic Republic of Iran and the United States have caused renewed increases in the prices of foreign currency and gold in Iran’s domestic markets. Iranian media outlets have also reported on the renewed increase in the dollar and other foreign currencies in Iran.
The news website “Fararu” reported on Tuesday, the 20th of Farvardin (April 9th), that the dollar price on Tuesday the 20th of Farvardin increased by at least 490 tomans compared to the previous day, reaching over 14,180 tomans. Some reports have cited even higher dollar prices.
This is the highest dollar exchange rate recorded since November of last year. Following the uncontrolled increase in the dollar’s price, the Central Bank took measures to inject foreign currency into Iran’s economic channels. Measures that apparently have lost their effectiveness.
The Central Bank and the Jahangiri Dollar
Abdolnasser Hemati, the Central Bank governor, announced on Sunday of the current week that the dollar buying and selling market is stagnant and the dollar is not being purchased at prices above 13,000 tomans in the market. Just one day after the Central Bank governor’s statement, the dollar price in the free market reached 14,200 tomans.
The prices of other currencies have also increased in Iran’s markets. The price of each euro in the free market has also reached 15,700 tomans.
The official dollar rate set by the government, which has become known as the “Jahangiri dollar,” has also failed to bring stability to currency markets. The difference between the official dollar rate and its price in SANA and NIMA markets, as well as in the free market, has led to increased rent-seeking and financial corruption.
As a result, many essential goods whose imports were conducted at the official rate have been removed from the cycle of receiving foreign currency at the official rate.
The latest example was the removal of red meat imports from the benefits provided for importing essential goods. The “Tabnack” news agency reported on Tuesday, the 20th of Farvardin, of the halt in meat imports at 4,200 toman dollars.
MohammadReza Kalami, the director general of the Supply Planning, Distribution and Market Regulation Office of the Ministry of Industry, Mines and Trade, stated that the reason for excluding meat imports at the official dollar rate was “preventing the decline in domestic red meat production” and creating incentive for livestock producers in Iran.
The Five Million Toman Station for Coins
Although officials of the Central Bank and members of the board of directors of the Tehran Gold and Jewelry Exchange have attributed the increase in coin prices in domestic markets to the rise in global gold prices, it does not appear that the renewed increase in coin prices in Iran can be explained solely by the global price increase.
The “Tabnack” website, publishing an economic report and citing Mohammad Kashtiaray, a member of the board of directors of the Tehran Gold and Jewelry Exchange, reported on the renewed increase in coin prices in domestic markets.
According to this report, the price of each full design old-pattern coin crossed the 4.75 million toman threshold on Tuesday. This is while each new design gold coin was traded at over 5 million tomans in the market on the same day.
Source: DW
