Page 25 - IRANRptJul18

Iran to launch third official exchange rate as tensions simmer over severe rial devaluation
I ran’s Rouhani administration is working to finalise a third official Iranian rial (IRR) exchange rate roughly midway between the two currently
sanctioned rates to the dollar of IRR38,000 and IRR42,000 and the IRR80,000-90,000 unofficial rates seen—to the great anger of many Iranian consumers and traders—in recent days, Mehr News Agency reported on June 25. It added that the new official rate would be roughly IRR65,000.
A meeting of government officials was reportedly scheduled at the last minute to address the repositioning of trading exposed to the severe currency depreciation, although the IRR did recover some ground against the dollar on June 25, closing at around IRR86,000 having strengthened by around IRR4,000 on the day from June 24. The IRR is in serious difficulties given the economic pressure being exerted by the US Trump administration on the Islamic Republic in a bid to cause Tehran to negotiate a new nuclear deal, or perhaps, if some observers are correct, in an attempt to provoke social unrest that could lead to regime change.
The new approved third rate is to be designated for importers and exporters, who must use the official NIMA online exchange rate mechanism.
An economic official who attended the meeting, at which with President Hassan Rouhani, was present, reportedly said: “They could convince the president to agree on negotiable transactions between importers and exporters in the exchange market.”
The official added that the government was preparing itself to take other necessary measures to bring the rial fluctuations against hard currencies under control.
June 25 brought rare street unrest in Tehran with most merchants in the capital’s Grand Bazaar shuttering their stalls and shops and protesting at the damage their businesses are enduring under the current management of foreign exchange trading and the soaring rates.
25 IRAN Country Report July 2018 www.intellinews.com