The value of each US dollar dropped to 137,0000 rial on Monday, while each US dollar was valued at more than 155,000 as early as last week. As the rial started to regain value at the end of last week, ordinary people poured to the market to sell their dollars in a bid to save their properties.
The more people and dollar dealers rushed to the market to sell their dollars for fear of losing more value of their properties, the more falling prices of foreign currencies gained momentum today.
Economic experts believe that the recovery of rial came after deescalation of recent tensions between Iran and the United States and the Central Bank of Iran increased its supplies of foreign currencies, especially the UAE’s dirham to the free and official market over the past few days.
The downfall of foreign currencies against rial is also largely attributed to the news of the launch of an integrated foreign currency market by the CBI as soon as this week. The integrated market is said to have aimed at bringing the prices in both the free market and the official market closer to each other in one single unified market and eliminating the illegal activities in the free market.
It is also worth mentioning that the US targeted the rial with a wave of illegal and unilateral sanctions recently. Earlier this month on May 2, the US administration decided not to extend the sanctions waivers on Iranian oil and later targeted Iran’s metal industry on May 8 with sanctions in an attempt to chock off Iran’s sources of income on the anniversary of its unilateral and unlawful withdrawal from Iran nuclear deal.