Important Points in the Currency Market for Households

With the intensification of sanctions and increasing pressure on Iran's economy, the discussion about preserving savings to maintain their value has once again become heated, and few people do not track the price of the dollar, gold, or goods in social media daily. In this article, we aim to share experts' experiences in simple language. What has been the return or increase in the price of foreign currencies? If we consider the price of 3,700 tomans at the beginning of this year and accept this week's price of 14,400 tomans, we reach an increase of 289%. What factors have influenced the increase in currency rates? The aftershocks of last year's unrest, intensified conflicts among economic forces within the regime, increased external pressures such as sanctions, the lack of a stable official policy from the government, and the organized entry of brokers into this market, along with the public's sensitivity to the rise or fall in currency prices, which we refer to as the news effect on currency prices. What is home dollar, and does it help the household economy? Home dollar is the dollar that households have purchased to preserve the value of their money and have kept at home, in bank safes, or in vaults, amounting to approximately 20 billion dollars. Keeping dollars at home and buying dollars is inherently cost-effective but only once, not forever, because it essentially only maintains the value of your money, provided you bought the currency at a low price. The next point is that since this money is not used for anything else, you cannot generate any profit other than the increase in its rate, and in a volatile market, if you do not act at the right time to buy or sell your currencies, your currency assets can lead to losses. What does speculation mean, and what are its benefits and drawbacks? Speculation means buying dollars at a low price and selling at a high price or selling at a high price and buying the same amount of dollars at a low price. Of course, those who engage in professional currency trading either have access to behind-the-scenes news and price-setting groups in the market or have a risk-taking personality. What types of dollar prices exist in the market, and how do we find the correct price? There are various dollar prices in Iran, which can be summarized as follows: Tehran Dollar: The dollar traded in Tehran. This Tehran dollar itself is divided into several subcategories: Sabzeh Meydan, Afshar, and Monoucheri, meaning the price of the dollar traded in Sabzeh Meydan may differ from the dollar traded at Istanbul Crossroads. Herat, Sulaymaniyah, Erbil, and Dubai Dollars: Dollars traded by currency market players in the exchanges of these cities, which enter or exit Iran and serve as a reference for dollar pricing in Iran. Remittance Dollar: Currency exchange offices that have foreign currency accounts abroad remit dollars for applicants, and the point here is that since cash is not involved in remittance dollars, their price is slightly cheaper than cash dollars. Sena Dollar: Sena is, in fact, a website and system that the Central Bank of Iran has launched to announce the average price of the dollar in exchanges. This site records the average price of the dollar and other currencies in the free market at various hours online, although prices in this system are recorded very conservatively. Nima Dollar: Nima was born with the unveiling of the government's new currency policies, and it was decided that exporters would offer dollars or other currencies to this market at a nearly controlled price so that legal importers would be buyers of these offers. Nima is, in fact, the name of the system where these transactions take place. Currently, the price of Nima dollar is somewhere between free dollar and floating government dollar. Tomorrow's Dollar: A dollar traded today but delivered tomorrow. This method is specific to the informal market and is subject to various fluctuations and events. What points should we consider? 1) The dollar is a volatile currency, and obtaining and pricing it is also difficult. So keep in mind that there is always the possibility that buying and selling dollars could result in a controversial situation for you. When buying and selling, pay attention to the date of issuance of the banknotes, avoid buying defective banknotes, and ensure the authenticity of the banknotes with ultraviolet light. 2) Be aware that prices provided during non-business hours or holidays, when the official or semi-official market is closed, are unrealistic. Therefore, for whatever reason you are looking to obtain currency, check the prices of the currency you want to buy from various sources a few days before the purchase day. 3) If you do not wish to speculate in the currency market, refrain from constantly monitoring your currency prices, as, as a non-professional, the emotions of this market will affect your decision to exchange currency, and the result is often a loss.