Dollar gains value against Iran’s national currency

Business Materials 25 May 2016 17:44

Baku, Azerbaijan, May 25

By Khalid Kazimov - Trend:

The official rate of the US dollar in Iran surged by 19 rials to hit 30,439 rials on May 25.

According to the website of the Central Bank of Iran, the official dollar rate was 30,420 rials on May 24.

Meanwhile, the US currency was traded at 34,526 rials in the free market today, Eghtesadonline website reports.

Dollar has been gaining value against the rial over the past three days, as on May 23 the Central Bank put dollar's official rate at 30,398 rials.

This is while Iran plans to introduce a single exchange rate for foreign currencies following the years of maintaining a multi-tiered currency market.

The multi-tiered exchange market emerged in Iran after a decision in 2012 by the EU and the US to impose more sanctions on Iran's financial, economic and oil sectors over Tehran's controversial nuclear program.

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 rials versus the US dollar. It was close to 10,000 rials in early 2011.

The nuclear-related international sanctions on the Islamic Republic were lifted following the implementation of the Joint Comprehensive Plan of Action (JCPOA) in January, curbing Iran's nuclear activity.