Iran's currency market is a good-looking car with weak engine

Tehran, Iran, Feb. 8

By Mehdi Sepahvand, Farhad Daneshvar - Trend:

While a couple of areas of Iran's economy such as the Tehran Stock Exchange (TSE) have positively reacted to the implementation of the Joint Comprehensive Plan of Action (JCPOA/nuclear deal), the country's traditional currency market still remains indifferent to the landmark political development, a recent survey carried out by Trend in Tehran, Iran's capital city, suggests.

A group of dealers operating official currency exchange outlets around Ferdowsi Square, the center of Tehran's currency exchange trade, have suggested that the currency market still suffers from fluctuation and they have not felt the imminent impact of the removal of sanctions on their business.

"Market is volatile, but our business is pretty much the same," a young currency trader replied to Trend's question whether the removal of sanctions has had an impact on their business.

Following the removal of economic sanctions against the Islamic Republic on Jan. 16, several observers have suggested that the possible flow of funds from foreign countries to Iran may help to stabilize the fluctuating market.

However a middle-aged man introducing himself as a currency market expert opposed the idea suggesting "the foreign companies' business in Iran will not have a significant impact on the currency market as their money will not be directed to the market. Their money will be transferred to bank accounts in Dubai."

Responding to a question on attempts made by the Central bank of Iran to control foreign currency rates in the country a trader said "the Central Bank could not feed the market with enough foreign currency, that's why they went back up after a short period of lowering."

However, another man who seemed to be in the business for a long time argued that fixing the currency rates would help to stabilize the market.

"The government is everything, the market will move according to governmental decisions," he added.

Meanwhile a group of traders refused to forecast the future of the currency market in the wake of the sanctions removal saying sentences such as "right now the market is a little low", "I cannot say what effect that will have on our business", "we should wait and see" and "nowadays, people come for small amounts of money to exchange".

The licensed shops are not the only currency traders in Iran as dozens of black market traders sinking their heads deep in their black jackets to endure the cold clutch small calculators and large stacks of cash just outside the authorized exchange outlets in Iran's currency hub Ferdowsi Sq. approach people whom their sixth sense has identified as customers and quietly let them know they exchange currencies for a little more profitable rate.

On the black market, one US dollar buys a bit more than 35,584 rials in licensed shops, while the official rate remains at 30,180.

While the removal of international sanctions against Iran offers a new outlook for a large emerging untapped market, the risk of exchange rate fluctuations remains as a major barrier for drawing the attention of international investors.

Over the past few months several Iranian financial analysts have shouted the need for establishing an official currency market within the framework of the Iranian Capital Market as the foreign investors would require the provision of hedging currency risks.

Iranian President Hassan Rouhani's government has been developing plans for luring $30 billion of foreign investment in the post-sanctions era to renew the country's aging industry and ailing economy.

Over the past decade in a bid to curb Iran's nuclear program, the international community took measures against Tehran, including restrictions imposed on the country's financial system, as well as industry, which have had a catastrophic impact on Iranians' economic situation and life conditions.

Russia leading exporter of polymer products to Turkmenistan
Russia leading exporter of polymer products to Turkmenistan
Russia increases exports of frozen vegetables to Turkmenistan
Russia increases exports of frozen vegetables to Turkmenistan
Turkmenistan’s Oil Refineries extends tender for gasoline purchase
Turkmenistan’s Oil Refineries extends tender for gasoline purchase
Loading Bars
US embassy in Azerbaijan urges to reconsider non-essential travel outside Absheron Peninsula
Global COVID-19 death toll could hit two million before vaccine in wide use: WHO
'Intellectual Field' to allow stabilize production level in Kazakhstan
Russian online newspaper publishes article about Azerbaijani president’s speech at UN
Iran's auto giants to talk over hybrid vehicles production
Azerbaijani ministry discloses volume of toxic emissions from cars
Georgian expert: Armenian authorities controlling separatist regime in Karabakh crossed red line
Azerbaijani minister of economy reviews activity of industrial enterprises in Ganja (PHOTO)
Volume of maritime cargo transshipment from Portugal via Turkey disclosed
Tactical-special and combat training classes underway in Azerbaijan (PHOTO/VİDEO)
EBRD and FAO to assist Georgia in field of agro tourism
STAR Refinery has dynamic decision-making process on oil purchases
Uzbekistan to be supplied with Russian coronavirus vaccines
Uzbekistan, Tajikistan to maintain Uzbek energy and water resources balance
Azerbaijan’s Bakcell preparing discounts for teachers within project
UK study shows rapid test has diagnostic sensitivity over 99%
Kazakhstan's grain export volume revealed
Amazon hiring 150 employees in Israel
Baku Higher Oil School on top of grade ranking among universities in Azerbaijan
Mortgage lending via state line in Azerbaijan up
Russia leading exporter of polymer products to Turkmenistan
Volume of deposits up in Georgia
September occupancies up in Georgian regional hotels
Kazakhstan, Azerbaijan strengthening co-op in medical tourism
Rates of dollarization on loans and deposits up in Georgia
Volume of deposits in Azerbaijan grows
Russia increases exports of frozen vegetables to Turkmenistan
Bakcell talks about network congestion and secure internet
Azerbaijani banks increase lending to clients
Iranian government is modernizing agriculture in Tehran Province
Italy lowers import of Turkish cars
Loans and deposits, expressed as percentage of GDP, increase in Georgia
Netherlands increase export volume to Kazakhstan year-on-year
Georgian hazelnuts exports up
Azerbaijan's Anglo Asian Mining reveals 1H2020 income
Several industrial projects to be implemented in Kazakhstan's Almaty
Azerbaijan's Azexport portal to place insurance services
Sooner Armenia withdraws its armed forces from the occupied territories of Azerbaijan, sooner the conflict will be resolved (PHOTO)
Moscow reports 1,560 new coronavirus cases, highest since June 12
Azerbaijani schoolchildren perform successfully at 32nd International Olympiad in Informatics (PHOTO)
Azerbaijan confirms 137 more COVID-19 recoveries
ADB: Developed capital markets enhance financial stability in Azerbaijan
Covid-19 daily infections swell 12% to new record
Energy efficiency to be increased at Uzbek manufacturing enterprises
Shell books tanker to load crude at Libya's Zueitina oil port
Turkmenistan’s Oil Refineries extends tender for gasoline purchase
Kazakhstan's QazTech Ventures to fund Uzbek startups
Gas exports from Azerbaijan to Turkey significantly up
VTB Bank, Entrepreneurship Development Fund of Azerbaijan issuing loans to businesses
Azerbaijani FM receives ambassador of Greece
Vietnam interested in import of Azerbaijani products
EU working with Georgian partners to strengthen cybersecurity in country
Azerbaijani ministry talks introduction of contactless payment in public transport in districts
Central Bank of Azerbaijan to hold deposit auction
Azerbaijan discloses data on tobacco exports for 2019
BP: Oil demand to remain central part of energy system for next 10–15 years
Azerbaijani MP: Armenia resettling terrorists to Nagorno-Karabakh region, facts prove ASALA's presence
Apple says has always abided by Irish law as EU appeals court ruling
Precious metal prices in Azerbaijan up again after decline
Iran assigns housing units to low income
Money supply increased in Uzbekistan
Uzbekistan to export fuel diesel to Pakistan
Georgia reveals volume of premiums attracted by insurance companies
UN highlights Azerbaijani president’s speech at 75th session of UN General Assembly
Kazakhstan's largest oil pipeline company to buy power stations via tender
LNG demand to double over next 20 years
Volume of gas production by Turkmenistan’s Lebapgazchykarysh revealed
Expert talks putting Azerbaijan's domestic tourism back on its feet
Deputy FM: Rejecting proposals to resolve conflict, Armenian leadership makes negotiations meaningless
Road in border village of Azerbaijan’s Gazakh district being overhauled (PHOTO)
Israeli politician: We find Azerbaijan a good friend of Israel
Around 6,000 people internationally wanted by Russia
Buffett-following investment trust to list in London
EU Special Representative: EU has strong interest in peace, stability in South Caucasus
Georgia reports 265 new cases of coronavirus
Instagram fixes breach found by Check Point
US’ share in Azerbaijan's total imports grows
FAO provides strategic support for Uzbek Agriculture Ministry
Conference of the People’s Council of Turkmenistan was held at the high organizational level
Italian geopolitical analyst: Mechanism needed for implementation of UNSC resolutions on Nagorno-Karabakh conflict
Turkmenistan to expand areas for growing crops
Azerbaijani oil prices down
Georgia, Azerbaijan united by energy and transport projects of international importance
President Ilham Aliyev receives EU Special Representative (PHOTO)
Chairman Israel Empowerment Lobby: Azerbaijan tolerates all religions
Electronic Water Portal launched in Azerbaijan (PHOTO)
Agro Service: Azerbaijan has no shortage in fertilizers
Сoordinated fake news attacks on Azerbaijan debunked (PHOTO)
Georgia takes part in high-level Open Government Summit together with world leaders
Belarus raises goods export to Azerbaijan
Georgia hosts Cyber ​​Security Forum
Demand for Turkish clothing in Georgian market declines
Turkmenistan working to improve transport macrostructure
Azerbaijani Ambassador presents his credentials to President of Mexico
Georgia to start producing anti-hail nets for orchards
German export expectations hit highest level since October 2018
President Ilham Aliyev: Non-fulfillment of Security Council resolutions undermines prestige of UN
Irish foreign minster says EU-UK trade deal breakthrough possible
Overhaul of Azerbaijani 'President Heydar Aliyev' tanker completed
Azerbaijani president: Aim pursued by Armenia to maintain current status-quo of occupation, to annex occupied territories
All news