Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

Iran sets rial's exchange rate to the US dollar amid record low

by Associated Press

TEHRAN Apr 10, 2018 - 12:00 am GMT+3
 In this April 4, 2015 photo, Iranian and U.S. banknotes are on display at a currency exchange shop in downtown Tehran, Iran. (AP Photo)
In this April 4, 2015 photo, Iranian and U.S. banknotes are on display at a currency exchange shop in downtown Tehran, Iran. (AP Photo)
by Associated Press Apr 10, 2018 12:00 am

Iran moved on Tuesday to enforce a single exchange rate to the dollar, banning all unregulated trading after the rial hit an all-time low.

The country's senior vice president, Eshaq Jahangiri, was quoted by state TV as saying that the official rate will be 42,000 rials to the dollar as of Tuesday. He said that trading at any other price was forbidden and would be considered "smuggling."

The decision came late Monday after a two-day hike in prices of foreign currencies that saw the rial trading at 62,000 to the dollar — an 18 percent drop since Saturday.

In downtown Tehran, people lined up to buy hard currency outside an exchange office at the new, fixed rate but many complained there were not enough dollars available. Some exchange offices turned off their currency display boards.

Mojtaba Habibi, a judiciary employee from the northeastern city of Mashhad, said he came to Tehran three days ago to buy up hard currency so he could take his child abroad for medical treatment.

Reza Haj Esmaili, a retired government worker passing by the line, said "the country's economic strength is dwindling away and people feel it is risky to keep their rials."

Government spokesman Mohammad Bagher Nobakht said Iran brings in some $95 billion a year in foreign currency, mostly from crude oil exports, which resumed after the 2015 nuclear deal. At the same time, $80 billion are spent on imports.

Iran remains largely cut off from international financial networks because of U.S. sanctions. The rial's slide is driven in part by fears the Trump administration will withdraw from the nuclear deal between Iran and world powers and impose new sanctions.

The head of Iran's central bank, Valiollah Seif, appeared before parliament Tuesday to explain the measure, the semi-official Fars news agency reported. He was met with angry objections and interruptions from a group of lawmakers who briefly pushed him around on the podium and demanded his resignation.

Seif blamed price hikes on "lack of certainty" about the future and said "enemies know the issue and try to use any opportunity" to create trouble for Iran. He also referred to "traces of plotting" by regional Arab rivals, including Saudi Arabia and the United Arab Emirates, without elaborating.

"We are in an economic war and enemies seek to create problems for our economy," said Nobakht.

Iran has long had trouble managing its currency market. In 2012, the government tried to set an official, single rate for the currency but the attempt failed.

A photo of a one-dollar bill with a cartoon of Jahangiri, the vice president, instead of the image of George Washington, circulated on social media in Iran, making fun of the announcement of a fixed exchange rate.

  • shortlink copied
  • Last Update: Apr 10, 2018 9:21 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    homepage
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    Stern, talent influx led to NBA transformation during 1980s
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021