The upward trend in exchange rates and gold in Iran's free market continues; the dollar price exceeds 6,500 Tomans

Continuing the upward trend in the dollar and coin rates in Iran's free market, the rate of one US dollar exceeded 6,500 tomans and the price of a coin exceeded two million tomans.

Unofficial reports from the free foreign exchange market indicate that the dollar rate, continuing its upward trend since the beginning of this week, also increased on Sunday, May 6, and exceeded 6,500 tomans.

Some reports also indicate that the dollar rate has been announced by some speculators as 7,000 tomans.

At the same time, the buying and selling of foreign exchange on the open market has almost stopped. Exchanges are refusing to sell foreign exchange and only a small number of open market brokers are willing to buy and sell.

The price of each gold coin has also reached about 2 million and 75 thousand tomans. It is said that citizens who are worried about the decline in the value of the rial have turned to buying coins to protect their capital.

Last month, following severe turmoil in the foreign exchange market, the government decided to control the market by decree and announced the dollar rate at 4,200 tomans. Dollars were sold at the government rate by only a few exchange houses in the Tehran foreign exchange market, and the government decided to limit the supply of dollars and provide the foreign exchange needed by importers and travelers through its affiliated suppliers.

The government also banned foreign exchange trading in the open market at prices other than the approved rate and declared it smuggling.

Since then, the official buying and selling of foreign currencies in Tehran and other cities in Iran has practically stopped, and people have been forced to buy foreign currency from underground dealers to meet their foreign exchange needs.

However, these government decisions did not reduce the turmoil in the foreign exchange market. Some analysts believe that the approaching announcement of President Trump's decision on the JCPOA and the possibility of the return of nuclear sanctions are among the reasons for the increased demand for foreign exchange and the rise in the value of coins and dollars. Increased liquidity and the lack of investment security in the country are also cited as other factors for this price increase.

Source: Voice of America