02 October, 2010
Iranians face problem over foreign currency
The US dollar rate has surged in Iran as local banks on Thursday halted the sale of foreign currency to private individuals, with some dealers saying the rise was because of latest sanctions on Tehran.
The dollar was trading at 12,000 Iranian rials after hitting a high of 12,500 rials on Wednesday as buyers flocked to foreign exchange brokers when the banks stopped supplying hard currency with no explanation, dealers said.
Earlier this week the greenback was trading at 10,500 rials.
The slight dip on Thursday in the dollar rate followed a statement by the central bank in which it gave the assurance that Tehran has “increased its reserves” and would continue selling gold coins and foreign currency to professionals.
Central Bank Governor Mahmoud Bahmani told Iranian media on Thursday that Iran intends to bring dollar rates down to 10,600 rials by the end of next week.
In recent years the central bank has consistently ensured that the Iranian rial remains strong against foreign currencies.
But on Thursday, the banks kept a tight lid on their reserves, with only a few branches selling a maximum of $ 500 US at the 10,500-rial rate to travellers showing passports and air tickets.
The banks have gradually refused to sell individuals hard currency in recent weeks without explanation or any government announcement.
The situation is reminiscent of the period during and after the 1980-88 war with Iraq, which did not ease until the 1990s.
Gulf Today
Iranians face problem over foreign currency
The US dollar rate has surged in Iran as local banks on Thursday halted the sale of foreign currency to private individuals, with some dealers saying the rise was because of latest sanctions on Tehran.
The dollar was trading at 12,000 Iranian rials after hitting a high of 12,500 rials on Wednesday as buyers flocked to foreign exchange brokers when the banks stopped supplying hard currency with no explanation, dealers said.
Earlier this week the greenback was trading at 10,500 rials.
The slight dip on Thursday in the dollar rate followed a statement by the central bank in which it gave the assurance that Tehran has “increased its reserves” and would continue selling gold coins and foreign currency to professionals.
Central Bank Governor Mahmoud Bahmani told Iranian media on Thursday that Iran intends to bring dollar rates down to 10,600 rials by the end of next week.
In recent years the central bank has consistently ensured that the Iranian rial remains strong against foreign currencies.
But on Thursday, the banks kept a tight lid on their reserves, with only a few branches selling a maximum of $ 500 US at the 10,500-rial rate to travellers showing passports and air tickets.
The banks have gradually refused to sell individuals hard currency in recent weeks without explanation or any government announcement.
The situation is reminiscent of the period during and after the 1980-88 war with Iraq, which did not ease until the 1990s.
Gulf Today
