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Price Hike Gains New Momentum In Iran 

An Iranian goldsmith counts his gold coins at a gold market in the main old Bazaar of Tehran, Iran, Thursday, Jan. 26, 2012. Iranians, worried about the potential impact of the latest sanctions, in recent months appeared focused on buying up dollars and g

The prices of gold and cars and the exchange rate for the U.S. dollar reached record highs on the Iranian market on June 11, while some social media users have complained about a new rise in the cost of housing in Tehran.

Each dollar was traded for 69,000 rials on Tehran’s foreign exchange market on June 11, while buyers could purchase a dollar against 67,300 rials the previous day, traders reported on the messaging service Telegram.

The price of one standard gold coin was higher than 25 million rials on the Tehran market on June 11, marking a 4 million rial rise in comparison with the price last week.

The price of various models of cars has risen between 20 million and 400 million rials over the past 10 days.

At the same time, several social media users have complained about price hikes on the housing market that have “made buying or renting a house or a flat unaffordable for most people,” as one person tweeted.

The Iranian government attempted to force the rate of 42,000 rials per U.S. dollar after the exchange rate surpassed 60,000 rials on April 10. Nevertheless, the price of the dollar and other foreign currencies has been on an unusual rise since March.

The Iranian Students News Agency (ISNA) wrote in a commentary on June 11, “It is time for the government to change its foreign exchange policy and recognize the market price.”

Forex market analyst Kambiz Afsari told reporters that U.S. sanctions against Iran and some European companies’ reluctance to trade with Iran may have affected the exchange rate on the Iranian market.

Following the United States’ pullout from the nuclear deal with Iran, it has given European companies six months to leave the Iranian market.

Economic analyst Ahmad Alavi told Radio Farda that the increase in the exchange rate and the prices of some goods should be attributed to rising inflation in Iran, which is due to government inefficiency and irregularities in its budget.

Iranian jewellers’ association chief Mohammad Keshtiaray told ISNA there has been no rise in the price of gold on the global market, and the price hype in Iran has other economic reasons such as the rise in demand.

Many Iranians have started investing in gold after several financial institutions failed to deliver the interest they had promised to pay their customers.

Moderate news website Asr Iran reported on June 11 that there has been a hike in prices of household appliances and cars in the past 10 days.

According to Asr Iran, the rise between 20 million and 400 million rials in the price of cars is due to foreign car manufacturers leaving Iran.

The website reported that Peugeot, Citroen, and Hyundai are among the car manufacturers that have already left the country. Meanwhile, some other manufacturers have limited their output, and this has led to a further rise in prices.

Iranian Industry Minister Mojtaba Khosrowtaj told reporters that he “did not have enough time to probe the rise in the price of cars.”

Earlier, the head of the car imports association told the press that few importers had managed to get the foreign currency they needed at the prices set by the government.

The news agency of the Iranian Parliament (ICANA) reported on June 11 that Japanese car manufacturer Mazda has also left Iran.

ICANA quoted MP Vali Maleki as saying that car manufacturers’ have bigger financial interests in the United States and they would not jeopardize those interests by continuing their presence on the Iranian market.