The Price of the Dollar in Tehran's Free Market Reaches a Historic Rate of 10,000 Tomans

According to reports from Tehran, on Sunday, August 7, the price of each US dollar in the unofficial market exceeded 10,000 tomans, and the price of gold coins also rose above 4 million tomans. The ISNA news agency noted that with global markets closed on Sunday, the price of the dollar in Iran's currency market was recorded above 10,000 tomans. Other currencies also faced price increases, with the price of each euro rising above 12,000 tomans. Some Telegram channels from Tehran reported higher prices for dollars and gold coins, while also stating that buying and selling currencies and coins in the unofficial market has practically stopped. The renewed surge in the dollar price in the unofficial market comes just a day after the Central Bank of Iran increased the price of the state dollar, known as the single-rate dollar, from 4,200 tomans to 4,403 tomans. This sudden jump in currency and coin prices occurs in the early days of Abdolnaser Hemmati's tenure as the new head of the Central Bank of Iran. According to ISNA, the previous and current heads of the Central Bank presented differing views on the reasons for the turmoil in the currency market during a farewell and introduction ceremony held on Saturday. Valiollah Seif, the former head of the Central Bank, stated that 'the accumulation of certain imbalances in the macroeconomy over the past years' and 'the insistence on currency stability during these years' are among the factors exacerbating the current tensions in the currency market. However, Abdolnaser Hemmati stated that the current state of the currency market is the result of 'the imbalance of the banking system's balance sheet, mismanagement in using monetary policy tools, and confusion in implementing currency policies.' The disorder in Iran's currency market peaked especially after the US withdrawal from the JCPOA, and in recent days, the verbal conflict between Iranian and American officials has further fueled this chaos. Last year, at the beginning of Hassan Rouhani's second term, the price of each US dollar in Iran's unofficial market was around 3,800 tomans. However, after widespread turmoil in the currency market in the following months, the Iranian government eventually announced on April 20 that the required currency for imports and the entry of export revenues into the monetary and banking network of Iran's economy would be provided at a rate of 4,200 tomans, considering all other rates as 'unofficial and illegal.' Nevertheless, this policy faced widespread criticism and, according to some officials and analysts, fostered corruption. For instance, Akbar Turkan, an advisor to the Iranian president, criticized the Central Bank's performance, stating that some importers 'use various tricks to obtain the 4,200 toman currency and sell goods at the 8,000 toman rate.' Following the failure of the single-rate currency policy, the Central Bank announced the establishment of a 'secondary currency market,' thus making the currency prices in Iran three-tiered. On the other hand, the Mehr news agency criticized the 'wrong' policies of Rouhani's government over the past 110 days, which led to the 'formation of rents,' reporting that raw and intermediary materials for production have also been excluded from receiving state currency. In the final months of last year, following a sudden increase in currency prices, Islamic Republic officials reported the arrest of dozens of 'currency brokers' and the freezing of 1,300 bank accounts. However, the upward trend continued, leading to street protests and the arrest of dozens of protesters.