New Record for Dollar in Iran Market: Eight Thousand Tomans

According to reports from Tehran, the price of the US dollar in the free market of Tehran reached eight thousand tomans on Saturday, June 22, marking an increase of about 1800 tomans within two months. According to the Iranian Students' News Agency (ISNA), brokers and currency exchange operators in the unofficial currency market traded the dollar at up to eight thousand tomans on Saturday. Unofficial sources also reported that early Saturday morning, each dollar was being traded at an unofficial rate of about 7600 tomans, but within a few hours, it suddenly jumped to the eight thousand tomans mark. However, it has been reported that by early afternoon on Saturday, dollar trading practically stopped or was conducted in small transactions between 7800 and eight thousand tomans. The official price of the dollar, known as the 'exchange rate' or 4200 tomans dollar, has also increased by fifty to seventy tomans in recent days. ISNA reported, citing brokers and currency exchange operators, that the reasons for the increase in the unofficial currency market include firstly the increase in prices in the official market and secondly the 'lack of currency supply in recent days from the Central Bank.' According to the new currency policies of the Iranian government, the Central Bank has been prohibited from distributing currency in the market, but ISNA wrote that until a week ago, the bank had been supplying foreign currencies in various ways to control the market. Furthermore, according to the new currency policies, the free currency market is not recognized, and any transactions in it are considered 'smuggling'; however, ISNA reported that the volume of supply and demand in this market has remained high even after the implementation of the new policies. The new currency policy of President Hassan Rouhani was announced by his first deputy, Eshaq Jahangiri, on April 20. Under the new policy, the currency needed for imports and the currency resulting from exports to the monetary and banking network of Iran's economy is provided at the rate of 4200 tomans, and all rates other than that are considered 'unofficial and illegal.' The new currency policy also established a system in the Central Bank called the 'Integrated Currency System' (NIMA) to allow exporters and importers to supply and obtain their currency. However, the implementation of this policy has faced failures in practice, and according to Mohammad Baqer Nobakht, the government spokesman, even some importers who received 4200 tomans for importing goods calculated their prices based on the free market dollar and sold them at higher prices. Alireza Salimi, a principlist member of parliament, also protested the new policy, stating, 'The allocation of 4200 tomans to specific individuals has led to the creation of dozens of Babak Zanjani.' Reports indicate that on Saturday, other currencies offered in the free market of Tehran also faced significant price increases. According to Fars News Agency, the price of each euro reached 9049 tomans, the pound 10032 tomans, and the dirham 2114 tomans, while the price of the new design gold coin also increased by 98 thousand tomans to two million and 696 thousand tomans. Reports indicate that on Saturday, other currencies offered in the free market of Tehran also faced price increases, including the euro, which has a reference rate of about 5000 tomans in the Central Bank, being traded at 8200 tomans in the free market.