Iranian riyal takes historic dive

The rate of Iranian rial against the dollar in the informal market fell to a record low of over 128,000 riyals for the dollar as seen on the Bonbast website, which aggregates information about the unofficial rates of the Iranian currency.

While at the beginning of the year the dollar could be bought and sold for less than 43,000 riyals, on September 3 the selling rate of riyal dropped to 129,000 Thus, the Iranian currency has fallen in price to the dollar three times since the beginning of the year.

A sharp fall in the rate of riyal has provoked strong demand for dollars in recent months in Iran, The Wall Street Journal wrote. Iranians are trying to stockpile savings against the backdrop of economic problems and US sanctions. The country’s black exchange market is booming.

Tehran eased restrictions on currency exchange. In July, a new secondary foreign exchange market was opened for small importers and exporters who want to trade in currencies at market rates.

In August, the authorities canceled the ban on currency exchange not at the official rate. But some restrictions remain. For example, the number of dollars that can be issued to customers.

US sanctions began to affect Iran even before they were introduced.




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