published: 2018-10-07 14:45:39
(2 Oct 2018) Iranians rushed to foreign exchange bureaus on Tuesday as Iran’s currency, the rial, unexpectedly rallied after weeks of depreciation following US President Donald Trump’s decision to withdraw America from Tehran’s nuclear deal with world powers.
In the Iranian capital, money exchange shops offered 135,000 rials for one US dollar.
Only the day before, the Iranian rial was selling 170,000 to 1 US dollar, with prices recently going as high as 190,000 to the dollar.
A street in central Tehran known for its currency exchange locations was teeming with buyers and sellers of dollars and other currencies.
Ali Kazemi, a government employee, welcomed the fall of the dollar price and urged authorities to make efforts to keep it down to the benefit of consumers.
But others were not as optimistic about the rial boost.
One woman told the Associated Press that she had not been able to purchase her required dollar bills since morning and the price fall was not happening on the ground.
Whether this will be a permanent rally remains unclear, as US sanctions targeting Iran’s vital oil industry loom in early November.
Analysts offered various reasons for the rally, including a new policy allowing the Central Bank to more muscularly intervene to support the rial, as well as allowing the import of more foreign currency from abroad.
There is also hope in Iran that Europe will be able to shield the country from further US sanctions due in November and targeting Iran’s oil industry.
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