Page 24 - IRANRptMay19

7.0 FX
Iran - FX
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Currency (units per EUR) (eop)
34,056
34,859
37,057
39,666
43,273
46,522
49,268
48,754
48,108
Currency (units per USD) (eop)
32,375
32,422
32,489
33,805
36,064
37,743
42,590
42,000
41,995
Euro, pound sterling gain against Iranian rial on new list of official rates
The Central Bank of Iran (CBI) on March 12 updated the official exchange rates. Several currencies gained against the Iranian rial (IRR). The official rates are only available to parties behind specific import and export flows including oil and essential goods. The rates in play for hard currencies on the unofficial, or free, market are at least 70% higher, given the collapse in the value of the rial since early last year when it became clear that the US was reinstating a regime of heavy sanctions aimed at Iran.
Under the changed list of official rates, the US dollar remained at IRR42,000. Iranian officials have moved away from actively using the currency in the country’s daily dealings.
The pound sterling, meanwhile, strengthened by IRR803 to IRR55,470 and the euro edged up IRR107 to IRR47,285. A Swiss franc now fetches IRR41,551, slightly less than before, while the Swedish crown is stronger at IRR4,483.
On the free market by mid-afternoon on March 13, the dollar was trading for IRR132,000, the euro for IRR146,650 and the pound sterling for IRR171,800. According to the much used but banned Iranian exchange rates website Bonbast.com, the benchmark Azadi gold sovereign was selling for IRR 43,800,0000, while the Imami gold coin was trading at IRR46,000,000.
The Iranian rial continued its slide on February 17, hurtling past the IRR130,000 barrier, according to local sites like bonbast.
Traders familiar with the situation blame the government for losing its grip on its previously heavy-handed approach to keeping markets calm. Some in Tehran are suggesting the rial could surpass the IRR150,000 mark..
Iran’s rial has been on a rollercoaster ride in recent months with its weakest point heading towards IRR200,000 to the dollar, causing the government to effectively close down the local foreign exchange market for several months. The IRR is weaker by around 60% against the USD compared to February of last year. For the past month, the dollar has been trading at between IRR110,000-120,000 on the open market.
Despite the drop in the rial, the Central Bank of Iran (CBI), which claims it has control over the street forex market, assured citizens it has more than enough in reserves and is in control of the local foreign exchange market to stem the loss.
CBI governor Abdolnasser Hemmati said in February that gold sovereign coins are also following the bullish trend down on Ferdowsi Street in Tehran, where one Emami gold coin now retails for IRR44,500,000, up 3% d/d, and the Azadi currently trades at IRR42,500,000.
The local TEDPIX, the all-star index on the Tehran Stock Exchange (TSE),
US dollar breaks 130,000 rial barrier as slide continues apace
24 IRAN Country Report May 2019 www.intellinews.com