Continued Upward Trend in Dollar and Gold Prices in Iran’s Free Market; Dollar Rate Surpasses 6,500 Tomans
As the upward trend in dollar and coin prices continues in Iran’s free market, the rate of the US dollar has risen above 6,500 tomans, and the price of gold coins has also crossed the two million toman mark.
Unofficial reports from the free currency market indicate that the dollar rate continued its upward trend from the beginning of this week, also increasing on Sunday, April 5, 2020, breaking through 6,500 tomans.
Some reports also suggest that the dollar rate has been quoted by some brokers at 7,000 tomans.
Meanwhile, currency trading in the free market has come to an almost complete halt. Money changers are refraining from selling currency, and only a small number of black market brokers are willing to buy and sell.
The price of each gold coin has also reached approximately 2 million and 75,000 tomans. It is said that citizens who are concerned about the depreciation of the rial have turned to buying gold coins to preserve their capital.
Last month, following severe turmoil in the currency market, the government decided to control the market through administrative decree and announced the dollar rate at 4,200 tomans. Dollars at the official rate were sold by only a few money changers in the Tehran currency market, and the government decided to provide the foreign currency needed by importers and travelers through suppliers affiliated with itself by limiting dollar supply.
The government also banned currency trading in the free market and prices other than the approved rate, declaring them illegal and smuggling.
Since then, formal trading of foreign currencies in Tehran and other Iranian cities has effectively stopped, and people have been forced to buy currency from underground brokers to meet their foreign currency needs.
Nevertheless, these government decisions have not reduced currency market turmoil. Some analysts attribute the approach of the time for President Trump’s decision on the nuclear deal and the possibility of a return of nuclear sanctions as one of the reasons for increased demand for currency purchases and rising gold coin and dollar prices. Increased liquidity and lack of investment security in the country have also been cited as other factors in this price increase.
Source: Voice of America
