Iranian rial drops against major foreign currencies

Business Materials 8 September 2017 17:39 (UTC +04:00)

Baku, Azerbaijan, Sept. 8

By Farhad Daneshvar – Trend:

While euro has been gaining against US dollar over the past weeks, Iranian national currency experienced a considerable drop in its value against a basket of foreign currencies since Sept. 2, the beginning of Iranian week.

Observers suggest that a drop in the volume of euro banknotes distributed in the domestic market, smuggle of US dollar from Iran to neighboring countries, and a surge in demand for foreign currency due to high number of holidaymakers visiting abroad are among the main causes for the strengthening of foreign currencies in the Iranian market.

The Central Bank of Iran on Thursday, the last working day of Iranian week, increased the official rate of the US dollar by 0.25 percent to 33,330 rials compared to Sept. 2, the first day of the week.

In the free market, the greenback was traded at 38,934 rials gaining 0.5 percent compared to Sept. 2.

Official rate of euro was announced 0.8 percent higher at 39,748 rials and its free market rate rose by 0.82 percent to stand at 46,952 rials.

The British pound’s official rate was increased by 1.02 percent to 43,492 rials and its free market rate ended the week 1.41 percent stronger at 50,845 rials.