Monday, October 1st, 2012
The Iranian currency has fallen to a historic low despite all efforts by the Islamic Republic to control the market.
Iranian media report that the dollar was traded at the record level of more than 30,000 rials on Sunday, while the price of the gold coin has reached 12 million rials and appears to be rising by the day.
The head of the Gold & Coin Union of Tehran said the rising price of gold and foreign currencies is due to low supply in the face of rising demand.
“If the Central Bank does not provide the necessary foreign currencies for the market, the prices will keep rising,” he said.
The Central Bank opened a centre for foreign currency exchange last Monday where the dollar and other currencies are offered at two percentage points below the average rate on the open market. The head of Central Bank had predicted that the opening of this centre would halt the fluctuations in the currency market and reverse the fall of the national currency.
The dollar was traded at about 12,000 rials last year at this time and began a gradual rise when U.S. and EU sanctions against Iran’s oil and financial sectors kicked in. However, in the past week, the national currency has been falling by the hour, and the foreign currency market appears to have spiraled out of control.