News ID: 256135
Published: 0323 GMT July 21, 2019

Iran’s rial gains significant value against US dollar

Iran’s rial gains significant value against US dollar

The Iranian national currency, the rial, was 118,000 against the US dollar on Sunday which shows a relatively high regain of value compared to months of low that followed the American introduction of crippling economic sanctions against Tehran.

That came despite a serious flare-up of tensions in previous days in the Persian Gulf where the US said it had shot down an Iranian drone, a claim denied by Tehran, just before Iranian military forces boarded a UK tanker carrying oil in the Strait of Hormuz, reported Fars News Agency.

Normally, traders in Iran and neighboring countries had used such opportunities to increase the price of dollar against the rial, saying there might be a serious military confrontation between Iran and US-led forces in the region.

However, the rial began rebounding earlier this week after months of staying higher than 130,000 against the dollar.

That came after the Iranian government introduced measures to control the market, including forcing exporters to bring the currencies earned from trading with foreign customers to an integrated market inside Iran. That helped shorten the gap between various currency prices in the market and encouraged households to sell their currency savings.

The relative stability in the market also comes despite repeated claims in Washington that the tough sanctions introduced by US President Donald Trump since he withdrew last year from a 2015 Iran nuclear deal have seriously weakened the Iranian economy and led to general discontent among the public.

However, experts believe Iran is successfully emerging from the impacts of sanctions as the rial is recovering and the government has managed to control inflation and create more jobs over the past months.

They say that the failure of US sanctions against Iran also owes to the fact that they have not been fully observed by major international powers, including those who have signed the nuclear deal.

On Wednesday, the Iranian MP Mohammad Javad Jamali Nobandegani announced that the legislative body had received 13 draft bills of plans to counter the US unilateral sanctions against the country.

In May, Governor of the Central Bank of Iran (CBI) Abdolnasser Hemmati announced six new tactics of the monetary body to counter the negative measures of the US unilateral sanctions against Tehran.

In April, Iranian First Vice President Es’haq Jahangiri said that the plan by the administration of US President Donald Trump to reduce Iran’s oil exports to zero is doomed to fail because Americans ignore the country’s immense economic potentials.

 

   
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