The Price of the US Dollar in the Currency Exchange Center Surpasses 3,000 Tomans

For the first time since the establishment of the currency exchange center under the Central Bank of Iran, the rate of each US dollar in this center has been announced to exceed 3,000 tomans. On Thursday, the price of each US dollar in this center was reported as 30,027 rials, indicating an increase of nearly 4 tomans compared to the previous day's price. The currency exchange center was established in October 2012, coinciding with the intensification of fluctuations in foreign currency prices in Iran, with the approval of Mahmoud Ahmadinejad, the then President, to organize and manage the allocation of currency to eligible applicants under the supervision of the Central Bank of Iran. Since its establishment, the price announced in this center has been considered as the official government exchange rate and an indicator in determining the prices of foreign currencies in Iran. Until now, this institution had announced the price of each US dollar to be less than 3,000 tomans. The crossing of the exchange dollar price over the 3,000 tomans threshold coincides with a significant increase in foreign currency prices in the free market in Iran. In recent weeks, the price of each US dollar in the free market has significantly increased, surpassing 3,600 tomans. The ISNA news agency reported the price of each US dollar in the free market on Thursday as 3,632 tomans, which is the highest price for the US dollar in the Iranian free currency market in recent weeks. In a report regarding the increase in the dollar price, ISNA mentioned speculation about the determination of the dollar price in Iran's next year's budget as one of the influential issues in this increase. The news agency stated that the price of each US dollar is likely to be set at 3,100 tomans in the next year's budget. Previously, Mohammad Baqer Nobakht, the government spokesman, denied an increase in the dollar price in the next year's budget, stating that the dollar price in the 2016 budget would not change. The dollar price in this year's Iranian government budget was set at 2,850 tomans. On the other hand, some Iranian economic officials have cited the increase in demand for foreign travel as the main factor in the price increase. Last week, Ali Tayebnia, the Iranian Minister of Economic Affairs and Finance, stated that the increase in demand for currency in the remaining time until the end of the current year has affected the dollar price. In other statements, the approach of the mourning days of Arbaeen and the possibility of a significant number of Iranian pilgrims traveling to Iraq has been cited as another reason for the increase in dollar demand. In this regard, Ezzatollah Youssefian Molla, a member of the Iranian Parliament's Planning and Budget Commission, told the Economy News website: 'We are approaching Arbaeen, and about one million people will travel from the country to Karbala. In this situation, it is natural that these one million people will need dollars for their travel expenses, which will shake the currency market.' Meanwhile, Mohammad Baqer Nobakht, the government spokesman, announced last week the 'managed' action of the Central Bank to control currency prices and stated that the currency market would regain its balance. He promised that 'we will soon witness a decrease in currency prices.'