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Iran's Currency Drops To A Seven-Month Low In Tehran's Forex Market

Tehran Forex market (Currency Exchange Market) on December 12, 2018. File photo
Tehran Forex market (Currency Exchange Market) on December 12, 2018. File photo

Iran’s currency reached its lowest level against the U.S. dollar in the past seven months, according to reports from Iran on Tuesday, May 7.

Foreign exchange websites reporting virtually live on actual free market rates, say that the Iranian rial reached a low of 154,000 against the greenback.

The Iranian currency reached a low of 150,000 to the dollar two days earlier and it was expected to go lower. Fifteen months ago, the rial was trading at less than 40,000, but it depreciated fourfold as U.S. sanctions hit Iran’s oil exports and the economy in general.

The euro reached a high of 170,000 to the rial and the Pound climbed to a high of almost 200,000.

The cheaper government rate for essential imports remains stable at 42,000 rials for the dollar, but members of parliament and others criticize the policy of offering lower rate dollars for its potential corruption, as profiteers find ways to get the cheaper dollars by fraudulent documents.

Iran has lost more than $10 billion in oil revenues since last November and the loss is expected to grow in the coming months, as the U.S. has phased out exemption offered till May for a handful of countries for buying oil from Iran.