Dollar Rises Again to Nearly 14,000 Tomans; 'Foreign Currency Prices Have Increased 2,000 Times in 40 Years'

As the price of the dollar rises again to nearly 14,000 tomans, a member of the Isfahan Chamber of Commerce stated that foreign currency rates have increased 2,000 times over the past 40 years. According to ISNA news agency, on Tuesday, September 10, the dollar increased by 1,400 tomans to reach 13,800 tomans. The report indicates that demand for purchasing foreign currency has risen again. This increase in the dollar price comes after a decrease from 15,000 tomans to 12,400 tomans on Sunday. ILNA news agency attributed the rise in the dollar price on Tuesday to the publication of a report regarding the amendment of the anti-money laundering law, one of four bills related to the implementation of the Financial Action Task Force (FATF) regulations, in the Expediency Discernment Council. However, ISNA noted that the Central Bank Governor's statement that the government has no new plans to inject currency into the market was one of the reasons for the dollar's price increase. The sharp rise in currency prices in Iran's free market began in Farvardin (March-April) following reports about the potential U.S. exit from the JCPOA. Meanwhile, according to the Associated Press, since the U.S. exited the JCPOA on May 8 of this year, the value of Iran's national currency has decreased by more than 140%. The increase in the dollar price has affected other economic indicators in Iran and has sparked a wave of protests in several cities. According to the Central Bank, the monthly inflation rate for Mordad (July-August) was 5.5%, an unprecedented figure not seen in the past 20 years. Additionally, the Research Center of the Iranian Parliament predicted that the economic growth rate this year would decline to between -0.5% and -2.8%, down from 3.7% last year. Nevertheless, Mostafa Renasi, head of the Policy and Monitoring Commission of the Isfahan Chamber of Commerce, stated that over the past 40 years, the prices of goods and services have increased thousands of times, while the dollar's rate has only increased 2,000 times. He added, 'From the price of each square meter of land to the minimum wage to the price of consumer goods, everything has increased several thousand times, but currency has had the least growth.' According to Mr. Renasi, the price of each kilogram of meat has risen from seven tomans to 70,000 tomans, a 10,000-fold increase. He called for a single exchange rate for the dollar, stating that a dual exchange rate creates rent-seeking opportunities. Currently, the exchange rate in Iran is triple-tiered. The government exchange rate is 4,200 tomans, and the dollar price in the NIMA system, which pertains to the sale of currency derived from non-oil exports, is below 10,000 tomans. The government of Hassan Rouhani has repeatedly tried to control the market by introducing new currency policies in recent months, but none of these policies have been successful so far.