Iran unifies free market, official currency exchange rates

By  Trend

Iranian First Vice-President Eshaq Jahangiri has announced the government's decision to unify the country’s official and open market exchange rates, local media outlets reported.

Jahangiri, after an emergency cabinet meeting, appeared on TV to announce that from Tuesday the price of the US dollar would be 42,000 rials in both markets, and for all business activities.

The decision was made following recent fluctuations in the country as the national currency, the rial, declined to an all-time low and fell to 6,460 by afternoon on the unregulated currency market.

Psychological behavior, growth in demand, getting assets out of the country, political and diplomatic tensions, as well as security concerns and risk of military confrontation, are believed to be among the main reasons behind the sharp plunge of the value of Iran’s national currency.

Back in February, the US dollar for the first time breached 50,000 Iranian rials when police in collaboration with the Central Bank of Iran arrested at least 90 currency traders, whom it blamed for deliberately driving the devaluation in order to profit from it.