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Dollar down in Iran over Lausanne news

4 April 2015 8:33



The Lausanne statement between Iran and P5+1 over solutions to move toward a final comprehensive nuclear agreement has shown immediate effects in the country’s free exchange market.

Optimisms that the lifting of US-led sanctions could happen only three months away pushed down the exchange rate of the greenback against the Rial in Tehran.

While the market is closed on Fridays, which is the Iranian weekend, media reports show each US Dollar has been traded at 31,000 Rials in free market trading – down some six percent from Thursday rates of around 33,000 Rials.

Some market activists are now speculating that the US dollar rates could plunge further below 30,000 Rials as Iran and P5+1 move closer to June 30 which is the deadline for signing the comprehensive Iran nuclear agreement.

They also say once the billions of dollars that are believed to have been hoarded by the public start to flow to the market over fears of further depreciation of the Dollars against Rial, the exchange rate of the greenback will fall further.

However, there are some who argue against both scenarios.  They say the present decrease in the exchange rate of the greenback is temporary. They also say no further declines in the exchange rate for the greenback is not possible as it could hurt Iran’s exporters.

Representatives of Iran and the P5+1 group of countries along with senior officials of the European Union have held intense talks in Lausanne for eight days. The talks were meant to narrow differences on Tehran’s nuclear energy activities.

The talks culminated in a joint statement in which the sides said they had reached mutual understanding over Iran’s nuclear program and will work to draw up a final accord by the end of the self-designated June 30 deadline. A key aspect of the accord will be the removal of a series of US-led economic sanctions on the country.

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