Financial Tribune – Foreign exchange rates on Tuesday registered dramatic increases after weeks of stability that saw the rial recover much of its earlier losses. The US dollar was traded 115, 000 in the afternoon, up from the previous day’s 103,000 rials. The euro was traded for 131,500 rial across exchange bureaux, up from 121,500 on Monday.
The currency market heats up every year around Christmas as commercial demand for hard currency in the form of ‘hawala’ shoots up for their end-of-the-year settlements with overseas partners.
However remarks by President Hassan Rouhani, on Tuesday in the Majlis about currency reserves “hitting zero” during the last Iranian New Year in March, is believed to have panicked the market.