The exchange rate of the U.S. dollar in Iran’s free currency market continued its upward trend, reaching a record high of 776,500 rials.
The euro also surpassed the 800,000-rial mark for the first time and was trading around 806,000 rials by the morning of Thursday, December 19. The British pound, having crossed 980,000 rials, is nearing the one-million-rial threshold.
A series of political and economic factors, including “Donald Trump’s victory in the U.S. presidential elections,” “developments in the Middle East and the risk of military conflict involving the Iranian regime,” “the increased likelihood of triggering the snapback mechanism against the regime,” and “the removal of preferential currency rates,” have been cited as the main reasons behind the dollar’s historic records.
In recent days, based on the Central Bank’s decision, the agreed-upon dollar rate of approximately 610,000 rials has replaced the preferential exchange rate.
Accordingly, exporters and importers must now conduct their currency transactions through the trade exchange platform.
Previously, importers could bring in goods at a rate of 540,000 rials. The sudden removal of the NIMA exchange rate, which leads to higher prices for goods and services, has sent an upward signal to the unofficial currency market. Nonetheless, officials deny that this decision has impacted prices.
On December 17, the head of Iran regime’s Central Bank attributed the rise of the dollar to “psychological operations by the enemy” during a televised interview and promised a reduction in foreign exchange rates. However, since then, the dollar’s rate has increased by at least 10,000 rials.
The Central Bank had anticipated that the introduction of the agreed currency market would align official rates closer to the free-market rate. However, following this change, the free-market dollar rate is once again diverging from the official rate.
