Dollar Continues to Break Records in Iran; Euro Enters 80,000 Toman Range

The exchange rate of the dollar in Iran's free currency market has reached a record high of 77,650 tomans. The euro has also entered the 80,000 toman range for the first time, trading around 80,600 tomans as of the morning of Thursday, December 29. The pound has surpassed 98,000 tomans and is approaching the 100,000 toman mark. A combination of political and economic factors, including 'Donald Trump's victory in the U.S. presidential election,' 'Middle Eastern developments and the risks of military conflict involving Iran,' 'increased likelihood of triggering the snapback mechanism against the Islamic Republic,' and 'the elimination of the Nima and preferential currency,' have been cited as the main reasons for the historic records of the dollar. Recently, based on a decision by the Central Bank, the agreed dollar rate of about 61,000 tomans has replaced the Nima currency. Consequently, exporters and importers must now buy and sell their required currency through the commercial currency trading system. Previously, importers could bring in goods at a rate of 54,000 tomans, and the sudden removal of the Nima currency has sent an upward signal to the unofficial currency market, as it is expected to increase the prices of goods and services. However, officials deny the impact of this decision on prices. The head of the Central Bank of Iran stated on December 27 in a television interview that the rise in the dollar was due to 'enemy psychological operations' and promised that foreign currency prices would decrease, but since then, the dollar has risen by at least 1,000 tomans. The Central Bank expected that the introduction of the agreed currency market would bring official rates closer to the free market rates, but after this change, the free dollar rate is once again distancing itself from the official dollar rate. Meanwhile, the spokesman for the parliamentary board stated that representatives have summoned the Minister of Economy to the parliament for questioning, and if necessary, they will initiate a motion for his impeachment. Abbas Goudarzi mentioned on Thursday that the negative impacts of currency fluctuations on the economy and people's livelihoods will be addressed as parliamentary sessions resume in the coming days. A member of the Economic Commission criticized the performance of the Central Bank and the Supreme Council of Monetary and Credit in regulating the currency market, stating, 'Even the poorest African countries do not experience a depreciation of their currency in this manner.' Alireza Zandian added that 'most of the problems in the currency market stem from the Central Bank itself.'