rial Archives - Iran News Daily

US dollar stumbles from 4-month high against Iranian rial

mahla — Thu, 22 Apr 2021 09:59:28 +0000

TEHRAN (Iran News) – US dollar stumbles from 4-month high against Iranian rial amid Vienna talks . The US dollar has tumbled against the Iranian rial amid talks in the Austrian capital Vienna to revive an international deal on the country’s nuclear program.

The dollar fell to below 240,000 against the rial on Tuesday, according to currency rate websites and reports in the local media.

The price was down 0.5% against the close of trade on Monday and a low from a four-month high of above 250,000 against the rial.

Market analyst said the dollar was falling against the rial on the hopes that Iran and global powers could reach an agreement in Vienna on how to revive the JCPOA, a 2015 international deal on Iran’s nuclear activities which had almost unraveled in 2018 when a former US government withdrew from it and imposed sanctions on Tehran.

The dollar traded even lower against the rial in Nima, a secondary market set up by the government to allow exporters and importers to exchange their hard currencies.

The official IRNA news agency said each dollar was selling for 230,000 rials in the Nima system on Tuesday.

The dollar had firmed against the rial in January after a slight fall following the presidential elections in US.

The IRNA said gold prices were also falling in Iran in line with declining exchange prices. It said benchmark bullion, known as Bahar Azadi, fell to around 100 million rials ($417) on Tuesday while each gram of gold sold for 10.05 million rials (nearly $42).

Stocks rose, however, as main index in the Tehran Stock Exchange rose by 2,824 points to 1.219 million, up 0.23% on Monday.

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Rial Gains After Trump’s Sickness Hurts Re-election Chances: Report

reporter 1222 — Mon, 05 Oct 2020 04:54:21 +0000

TEHRAN (Iran News) – Iran’s rial has strengthened against the US dollar in the unofficial market mainly on speculations that US President Donald Trump’s sickness could hurt his re-election chances in the next month’s elections.

A Sunday report by semi-official Tasnim news agency said currency traders in downtown Tehran were of the idea that Trump’s infection with the coronavirus and his poor performance in a first presidential debate held earlier this week had contributed to the rial’s growth.

US dollar dipped to 286,000 against the rial later in the day, down nearly five percent compared to Friday when the Iranian currency hit a new record low.

Tasnim said measures taken in recent days by the Central Bank of Iran (CBI), including removing a cap on trade in a secondary exchange market, had also played a role in the market.

Traders said the rial will continue to firm against other currencies over the next few days although some said Trump’s discharge from hospital, expected on Monday, could reverse the trend.

However, experts believe the dollar could lose almost a third of its value against the rial immediately after a potential loss for Trump in the November 3 election.

An official price of 42,000 for the rial against the dollar is still used by the government to fund imports of staples and medicines. The price has not changed since early 2018 when the national currency began its fall on news of the United States would leave a nuclear deal with Iran and impose extensive sanctions on the country.

Gold also fell sharply on Sunday with benchmark gold coin known as Bahar Azadi dropping to 135 million rials, down 10 percent compared to Saturday.

Press TV contributed to this story.

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Rial Devaluation to End As CBI Resumes Rationing Dollar

reporter 1222 — Tue, 15 Sep 2020 03:59:16 +0000

TEHRAN (Iran News) – Devaluation for the Iranian currency (rial) seems to have come to an end as the Central Bank of Iran (CBI) resumes rationing the US dollar while it dismantles price restrictions in two government-run exchange markets.

The official IRNA news agency said that CBI efforts to strengthen the rial finally put the brakes on the greenback on Monday as it was selling 260,000 against the rial in late afternoon trade in the unofficial exchange market.

The dollar had surged to fresh highs late last week when it rose nearly 10 percent against the rial compared to early in September.

That was a fresh low for the rial which has devalued more than 500 percent in the past four years.

The government maintains an official price tag of 42,000 for the rial against the dollar which it mostly uses for imports of staples and medicines.

It has dismissed concerns about the falling value of the national currency, saying much of the devaluation has taken place because of illegal speculative trade in the market.

The report by IRNA said that a former scheme for rationing the dollar, which earmarks $2,200 dollars on the official price to each Iranian citizen every year, was resumed early on Monday, allowing the CBI to partially contain the prices in the unofficial market.

To further control the prices, the CBI also removed a price cap mechanism in its secondary exchange market, known as NIMA, where exporters sell their foreign currency proceedings to importers.

It also dismantled the official price tag from its sanctioned exchange dealers to control the speculative trade, said the report by IRNA.

Press TV contributed to this story.

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Majlis Slashes Four Zeros From National Currency

reporter 1222 — Mon, 04 May 2020 18:19:36 +0000

Majlis Slashes Four Zeros From National Currency

IRAN NEWS ECONOMIC DESK

TEHRAN – Majlis yesterday passed a bill allowing the government to slash four zeros from the rial, after a sharp fall in the value of the currency.

Under the approved bill, Iran’s national currency will be changed from the rial to the Toman, which is equal to 10,000 rials.

The bill needs to be approved by the Guardian Council before it takes effect.

Iran’s state TV said the Central Bank of Iran will have two years to “pave the ground to change the currency to Toman”.

Addressing to the open session of Majlis in defense of the bill, the governor of Central Bank Abdolnaser Hemmati said that because of the inflation in the past five decades, rial and dinar have lost their stamina and actually toman has replaced them in the society and people use toman in their daily trades and they even equals 50 tomans to 50,000 tomans.

On the cost of destroying old banknotes and printing new ones, he said there are some eight billions of banknotes circulating in the country and five billions of them are banknotes with value less than 2,000 tomans and by this approval and cutting four zeros, the bank can circulate one- and two-toman coins.

Hemmati reiterated that currently the bank destroys one billions of banknotes annually which its annual cost is around 400b tomans.

He reiterated that protecting the reputation of the national currency is very important, adding that currently the gap for changing rial with currencies like dollar and euro is very high. He admitted that the ration between national currency with dollar is 0.000006 which is a very weak one in the world.

Hemmati added that cutting the zeros will revive usage of coins in the country, adding that currently the per capita of banknote in the country is 102 and the figure for the coins is just 26 while the per capita of coins in other countries is three times more than Iran.

He once again reiterated that cutting zeros has no impact on inflation and they are other factors which are crucial in inflation.

Hemmati reiterated that replacing the current banknotes with the new ones will be gradual while both rial and toman will be valid during the transition period. After that phase, all financial commitments based on the rial will be fulfilled in toman, he stressed.

The idea of fewer zeros has been floated for almost 16 years. The initiative to change the currency was first proposed by the government in August.

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Zeroes off, Toman Comes

reporter 1222 — Mon, 04 May 2020 08:13:40 +0000

TEHRAN (Iran News) – Iranian lawmakers approved on Monday a monetary bill to shave four zeroes off the national currency.

As per the bill ‘Reforming Monetary and Banking Law’, with shaving off zeroes, the monetary unit will change officially from the rial to the commonly used toman.

Furthermore, the minor monetary unit of the new currency will be the ‘parseh’.

So, as per the newly ratified law, 10,000 rials will be equal to 1 toman and each toman will be equal to 100 parseh.

The parity rate of foreign currencies will be set and adjusted by the Central Bank of Iran (CBI) as per the new currency system.

The Parliament has given the government a maximum of two years as a transition period to implement the law and replace the banknotes and coins.

Accordingly, both rial and toman will be valid during the transition period. After that phase, all financial commitments based on the rial will be fulfilled in toman.

According to CBI, there are 8 billion pieces of banknotes circulating in the country and regularly impose high costs of printing new money on the government.

The idea of fewer zeros has been floated for almost 16 years. The initiative to change the currency was first proposed by the government in August.

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National currency ‘zeros’ removing will ease transactions: CBI

reporter 1222 — Mon, 30 Sep 2019 11:02:34 +0000

Iran news quotes the story of removing zero from Rial, told by Irandaily.

Removing four zeros from the national currency, the rial, will help facilitate people’s financial transactions, said the governor of the Central Bank of Iran (CBI).

In an address to an open session of the Iranian Parliament on Sunday, Abdolnaser Hemmati said that at present there are nine billion banknotes in circulation in Iran, according to IRNA.

He also noted that once the zeros are removed, the number of banknotes in Iran will stand at 2.2 billion, adding that the move will also lead to the coins returning to the country’s economic cycle.

Hemmati said the issue of improving the appearance of the national currency was a necessity which has been discussed and studied frequently for a long time.

The national currency has practically lost some of its value to inflation, the CBI head noted, adding that people do not use the rial to refer to their national currency and prefer the toman – each 10 rials equals one toman.

The goal pursued by revaluating the rial tenfold and reverting to the currency’s old name, the toman, is to make trade and financial transactions and affairs easier for the people of the country, he said.

The rial’s devaluation has practically led to coins’ exclusion from people’s financial transactions, Hemmati added, noting that producing a 500-toman coin (11 cents), costs 800 tomans (19 cents) for the Iranian government.

To restore balance to the country’s monetary system, “we require a four-year period,” Hemmati said.

According to wiki informations, unsourced material may be challenged and removed. Redenomination is the process of changing the face value of banknotes or coins in circulation. It may be done because inflation has made the currency unit so small that only large denominations of the currency are in circulation.

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Role of ‘rial’ to be strengthened in global exchanges

reporter 1222 — Wed, 16 Jan 2019 09:00:15 +0000

Minister of Industry, Mine and Trade Reza Rahmani said that role of Iranian ‘rial’ would be strengthened in financial exchanges with many countries in the world and this issue is of the main macro policies of the government that should be taken into serious consideration.

He made the above remark late on Monday among industrialists in Gamishan, northwest Golestan province and stated, “the more we trade with the national currency, the low fluctuations of exchange rate will be observed although absolute removal of transacting with foreign currency (dollar and euro) is time consuming.”

He pointed to the significant price hike of exchange rate and said, “considerable price hike of exchange rate was an opportunity for the production sector, because, not only this issue prevented products from smuggling into the country but also it created an opportunity to export surplus products with fair and reasonable price.”

He pointed to the macro policy of using national currency in international trade and said, “currently, this policy is followed up seriously by Turkey and Russia and many countries are doing business with their national currency.”

Minister of Industry, Mine and Trade Rahmani pointed to the high potentials and capacities of Golestan province in industrial sector and said, “a number of 112 industrial and production units were put into operation in this province in the current year (started March 21, 2018) which indicate significant growth of this province in this sector.”

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Rial regaining value against foreign currencies: CBI governor

reporter 1222 — Sun, 09 Sep 2018 09:30:31 +0000

Iranian Central Bank Governor Abdolnasser Hemmati says that with the CBI’s intervention in foreign exchange market, the rising trajectory of value for Iranian national currency rial has started.

The CBI governor made the remarks after a meeting with economy commission of the Iranian Parliament on Sunday, during which important issues relevant to monetary and currency policies were discussed and some explanations were offered to the members of the commission, according to Hemmati.

“A sum of around $1.3 billion has been distributed in the secondary currency market by non-oil goods exporters and on average each euro is equal to around 90,000 rials and the currency at this rate has been given to importers,” said Hemmati.

The official maintained that in the past month the government has offered $1.1 billion at a much cheaper rate of 42,000 rials each to those who are importing basic necessary goods like medicine.

He added that the central government has strengthened its foreign exchange reserves in the past month and reassured that the central government will not let the foreign exchange reserves fall in size.

He further stressed that the national currency will gradually regain its value.

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More Azerbaijanis eager to visit Iran as Rial sags

reporter 1222 — Sat, 04 Aug 2018 14:00:22 +0000

As Azerbaijani national currency Manat gains strength against Iranian Rial, more people from the northern neighboring country are eager to visit Iran.

As the Iranian Rial loses its value against foreign currencies, the costs of services and commodities become cheaper for citizens of neigbouring countries such as Iraq and Azerbaijan, sparking a huge increase in the number of visitors to Iran, particularly for medical purposes.

The value of Azerbaijani Manat has reached above 60,000 Rials, instigating more Azerbaijanis to visit their cheaper southern neighbor.

The Manat value was half the current price just last month and as a result, according to the reports from border crossings between Iran and Azerbaijan, a huge number of people from the northern country are pouring into Iran as the costs of commodities and services are much lower in Iran now compared to their own country.

The Iranian port city of Astara on the border with Azerbaijan, is one of the most important cities in the supply and demand of the Azeri Manat, US dollars and euros and a large amount of Manat and other foreign currencies change hands in the city every day.

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Iran’s current economic conditions not permanent

reporter 1222 — Mon, 30 Jul 2018 13:30:32 +0000

Touching upon the decline of Iran’s Rial value in recent months, Iranian First Vice-President Es’hagh Jahangiri said that these new economic conditions will not be permanent.

Saying that the country’s new economic conditions are transient rather than permanent, he added, “if we can manage this situation well and pass through this stage, the country’s economy will be re-stabilized and economic indicators will once again become positive.”

Jahangiri made the remarks on Monday in the ‘Resistance Economy’ session in Tehran.

The United States wants to affect public opinion of Iranian people before imposing sanctions and starting the so-called economic war against Iranian nation, he highlighted. “US is after killing peoples trust and hope for future to operationalize its political aims in Iran.”

Elsewhere he went on to say that providing basic needs of people is the main priority of the administration’s economy team. “We should plan in such a way to minimize the effect of sanctions on people,” he added.

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