Continued Decline in Currency and Coin Prices in Iran Concurrent with Approval of CFT Bill

Iranian news agencies report a continued decline in currency prices on Sunday, October 7. Most domestic media in Iran link this to the approval of the bill for Iran's accession to the "Convention on Combating the Financing of Terrorism" (CFT), which was passed in parliament on the same day, while newspapers like Kayhan reject this connection. Iran was nearing the end of its deadline to join this convention. Not joining the CFT would increase the risk of cooperation with Iran, leading to reduced banking collaborations. Abbasali Kadkhodai, spokesman for the Guardian Council, stated on Sunday in response to the approval of the CFT accession bill that "it is too early to comment on the CFT." The Iranian currency market fluctuated following the announcement of the U.S. withdrawal from the JCPOA, which also contributed to rising prices of other goods and services in Iran. However, today ILNA reported that with the approval of the CFT bill, "the currency market has been shocked, and exchange offices are not buying currency from the public. Street brokers set the selling price between 11,900 tomans and 12,200 tomans, while their buying price is between 10,500 and 11,000 tomans." According to this report, on Sunday (October 7), banks are buying each U.S. dollar for "99,500 rials from sellers, unchanged from two days ago." This is while on the first day of the currency buying and selling scheme in authorized banks, banks were buying each U.S. dollar for up to 10,500 tomans. ISNA also reported that the currency market from Ferdowsi Square to Sabzeh Meydan followed a "declining trend" until noon on Sunday, with the buying price of the dollar reaching 11,600 tomans and the selling price reaching 12,500 tomans. According to ISNA, "most exchange offices only have their boards lit and show no willingness to buy and sell." ISNA reported that "most of the market activity is for selling various currencies by the public and even brokers. However, some brokers are looking to buy various currencies, including dollars, euros, and lira from the public at lower prices." This news agency highlighted the "notable issue" in the free currency market as the "decrease in trading fervor" and the reduced number of people and brokers compared to previous days. Mehr news agency also reported that the Tehran currency market has a "different atmosphere from the past," with exchange offices officially announcing prices for buying and selling popular currencies like the dollar and euro. Mehr also reported an increase in "brokers' pleas" compared to previous days for buying and selling currency, stating they are willing to pay "even 100 to 200 tomans more than the rates announced by exchange offices to avoid seeing their businesses die so soon." This news agency quoted brokers as saying that the trend of currency rates will continue to decline in the coming days. Additionally, today the price of the Imam coin is 3 million 700 thousand tomans, the Bahar Azadi coin is 3 million 500 thousand tomans, and the half and quarter coins are trading at 1 million 800 thousand tomans and 980 thousand tomans, respectively. The declining trend of the dollar price continues as Abdollah Mohammadi, a board member of the Tehran Gold and Jewelry Union, told ILNA that "any good news, including Iran's accession to the international convention against the financing of terrorism, has a positive effect on our society and market. However, the impact of good news fades and is forgotten after 72 hours." The dollar price is currently declining as the head of the Central Bank of Iran, on October 5, without providing details, announced initial "agreements" with Russia and Turkey to eliminate the dollar and conduct economic transactions in the national currencies of the three countries. Abdolnaser Hemmati, during his trip to Moscow, stated in an interview with IRNA and Sputnik news agencies that 30% of Iran's transactions with Russia are conducted in national currencies. He mentioned that these two countries aim to increase the volume of transactions in national currencies. The commander of Greater Tehran Police also reported the summoning of 942 "offenders" in the coin and currency market and the arrest of 147 individuals in this regard. Hossein Rahimi described the detainees in a public session of the Tehran City Council as individuals who, like "leeches, suck the blood of the people."