The Iranian riyal is falling against the dollar and Tehran is taking urgent measures

The Iranian riyal is falling against the dollar and Tehran is taking urgent measures



Twilight News

8 hours ago

The Central Bank of Iran has taken measures to stop the deterioration of the riyal against foreign currencies such as the dollar, including raising interest rates on deposit accounts.

The measures taken by the Central Bank of Iran allow local banks to open deposit accounts for a year at interest rates of up to 20 percent, instead of 15 percent, in the past two weeks.

The central bank is seeking to encourage Iranians to keep their money in the banking system instead of buying dollars or other foreign currencies, AFP quoted Iranian media as saying.

It is noteworthy that the Iranian riyal had lost in the past six months about 25 percent of its value against the US dollar.

In addition to measures by the central bank, the Iranian authorities closed bank accounts for more than 775 people, whom they considered responsible for stirring unrest in the exchange markets, noting that they traded the equivalent of 200 trillion riyals or just over 4 billion dollars, while arrested about 90 currency dealers.

After the arrests and measures announced by the Central Bank, the riyal witnessed a slight improvement Thursday against the dollar to reach 47400 riyals per dollar against 50,000 riyals on Wednesday.

The dollar was equivalent to 9,200 Iranian riyals in 2010, but the tightening of US and European sanctions on Iran over its nuclear program from the end of 2011 led to the decline of the Iranian currency, reaching 47,800 on Wednesday.

The exchange rate of the Iranian riyal in December 2016 fell significantly, losing about 19 percent, that is the current decline of the riyal against the dollar is a new record high.



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