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Media In Iran Report Rial Rising Again

The Iranian currency rial did recover to below the 100,000 threshold on December 12 but quickly returned to just above the line.

Iranian news agencies report that the value of the national currency rial has further increased against major currencies, and is now trading below the 100,000 rial to the dollar threshold.

However, a website, apparently operating outside Iran and specializing in reporting currency rates, shows the rial trading just above the 100,000 mark.

In September the Iranian currency reached an all-time low of 180,000 rials against the dollar after months of steep declines that saw the currency falling more than five-fold.

An ailing economy and the United States decision to leave the Iran nuclear deal and reimpose sanctions has a dealt a blow to economic confidence in the Iranian markets.

The Central Bank has announced that it is “managing” the currency market and boosting the rial in various ways. Law enforcement has also stepped in arresting dozens of currency traders and two were executed in November in what was seen as a “message” to others and to blame the catastrophic rial fall on speculators.

The rial gradually began to recover and reached the 100,000 threshold, although that is almost three times lower than what it was worth a year ago.

Media reports on Sunday also say that very little currency trading is taking place. New regulations have limited the purchase of dollars to annually $2,000 for each citizen.

Large companies which obtain a license to import “essential’ goods, receive a much cheaper preferential rate of around 42,000 rials for each dollar.