Baku, Azerbaijan, Dec.1
By Fatih Karimov - Trend:
Iranian economy minister Ali Tayyebnia says fluctuations in Iran's foreign currency market are transient and the market will stabilize.
Referring to the recent rise in free market foreign currency prices, he said no specific changes have occurred in principle in the capital market, so we expect that the market will stabilize, Iran's IRNA news agency reported on Dec. 1.
He warned people against reacting emotionally and said if people buy foreign currency in this period of rising prices, they will be certainly losers.
US dollar exchange rate in Iran's free market rose to 35,000 rials on Sunday, November 30, compared to 33,100 roils on Thursday.
US dollar exchange rate rose by 105 rials compared to Saturday's rate.
Some foreign currency brokers believe that setting the dollar price at 28,500 rials by the government in the next calendar year's budget bill was the main reason behind the rise in the free market rate. Some others say the recent fall in oil prices was the main reason.
The rise in the exchange rate of foreign currencies at Iran's free market comes as Iran and the P5+1 group agreed to extend nuclear talks until July 1, 2015 after failing to meet the 24 Nov. deadline to reach a comprehensive nuclear agreement.
The sides also extended the Geneva nuclear deal, which was signed last November for providing Iran with some sanctions relief in exchange for Tehran agreeing to limit certain aspects of its nuclear activities.
Iran's national currency, the rial, lost about 50 percent of its foreign exchange value in less than a week in October 2012, standing at 35,500 versus the dollar. It was close to 10,000 in early 2011.
Edited by CN