US dollar crumbling in Iran’s market as rial recoups losses

The price of the US dollar and other major currencies has fallen in the Iranian market amid increased injections by the government and prospects of easing political and regional tensions.

News ID: 5656

Date: 29 December 2024 - 22:43

TABNAK, Dec 29: The US dollar plunged to 805,000 rials on Sunday, down from 820,500 rials reported at the close of trade on Saturday, according to major Iranian websites monitoring exchange rates.

Other currencies also fell against the rial after reports said state-run petrochemical companies had supplied more of their export proceeds to an exchange market run by Iran's central bank.

The fall gave the rial a new momentum and led to hopes that the Iranian currency would firm further after weeks of posting losses.

Reports said the main reason for the falling prices of the dollar in the Iranian market was a decision by the government to enter the exchange market and inject currency.

They said state-controlled companies that are required by law to supply their export proceeds to the Iran Center for Exchange of Currency and Gold (ICE), to allow importers to access hard currency at prices below the market rates, had increased their injections in recent days.

The semi-official Tasnim news agency said in a report on Sunday that several large petrochemical companies were coordinating to increase their supply of hard currency to the ICE in the coming days to further impact the prices.

Sadegh Savaedi, a member of Iran’s chamber of commerce said that the price of the dollar could fall by as much as 10% in the coming days.

Savaedi said that the price of safe-haven currencies had increased in recent weeks mainly because of the regional situation and the political tensions between Iran and the West.