Dollar Price in Currency Market Increased by Over 500 Tomans in Less Than a Few Hours

The price of the dollar in the Tehran currency market increased by more than 500 tomans on Sunday, April 8, within a few hours. While the Fars news agency reported an increase to 5,580 tomans, some reports indicated that dollars were being sold at exchange offices for 5,800 tomans. Meanwhile, Ahmad Hosseini, a member of parliament, spoke of the possibility of the dollar price rising to 7,000 tomans. The price of the dollar in the Tehran currency market was 5,250 tomans at the last hour on Saturday, April 7, but on Sunday, Fars reported that the dollar price had risen by 230 tomans to 5,580 tomans. However, some images shared on social media indicated that dollars were being sold for 5,800 tomans at some exchange offices. This news was later confirmed in a report by the Tasnim news agency. Meanwhile, Radio Farda learned in an interview with one of the exchange dealers in Tehran that the sale of currency at some exchange offices had been halted since noon today, Tehran time. The price of the US dollar in the free market in Iran had remained relatively stable in the last month, but experienced a jump of 200 to 250 tomans during the Nowruz holidays. Nevertheless, the Governor of the Central Bank of Iran still insists that the high demand for dollars in the market is "temporary" and that these fluctuations will be "short-term." Valiollah Seif had previously stated in Bahman of last year that people should not buy dollars because "it will become cheaper." Meanwhile, the Governor of the Central Bank and the Minister of Economy are scheduled to attend a meeting of the Economic Commission of Parliament on Tuesday to explain this situation. Some members of parliament had previously reported the government's intention to raise the dollar price, but government officials denied this. However, Akbar Turkan, head of the Free Zones Organization, welcomed the increase in the dollar price, stating that foreign currency prices had been kept "artificially" low. Meanwhile, according to the House of the Nation website, Javad Hosseini, a representative from Sanandaj in parliament, mentioned that "signals indicating an increase in the dollar to 7,000 tomans are being transmitted." This parliament member emphasized that some government officials are "not averse to increasing the exchange rate." Some analysts consider the political outlook of Iran and the potential exit of the United States from the nuclear agreement as influential factors that cannot be overlooked. In this context, Mohammad Reza Pourabrahimi, head of the Economic Commission of Parliament, stated that the increase in exchange rates has "no economic basis" and that "political tensions, the stock market, and speculation can influence this market." He also expressed regret that the role of the Central Bank in managing the currency market has "reached zero." Previously, Faridoun Khavand, an economic analyst and university professor, noted in a memo for Radio Farda that several influential variables in the Iranian currency market are beyond the control of the Central Bank. According to Mr. Khavand, currency market players are keeping an eye on the fate of the "JCPOA" and will consider a potential U.S. exit from this agreement as a warning sign for further destabilization of the rial. Ahmad Alavi, an economist residing in Sweden, also stated in an interview with Radio Farda that the increase in exchange rates in the Iranian market was predictable. He mentioned that since no changes have occurred in the structure of the Iranian economy contrary to the promises of the Central Bank, the same previous and fundamental factors such as inflation, public rush to the currency market, currency hoarding, and capital flight from the country have led to a continuous increase in currency prices. The increase in the dollar price in the Iranian currency market occurred while the stock index in the Tehran Stock Exchange also showed a decrease of 438 units on Sunday, April 8.