Iran’s rial rebounds from historic low amid heavier CBI intervention

Iran’s rial gains after US restores sanctions waiver

The Iranian rial has strengthened against major international currencies after the United States restored sanctions waivers to the country, a move seen by foreign exchange traders as a signal that Washington may soon return to compliance with a 2015 deal on Iran’s nuclear program, known as the JCPOA.

The rial closed at 266,500 against the US dollar on Saturday, up nearly 2.5% against prices reported in the market in Tehran when the working week ended on Thursday.

The official IRNA news agency said that the price of the US dollar in a government-run exchange center had dropped by 1% to 249,960 rials on Saturday.

Analysts said rial’s gain was merely a market reaction to a Friday decision by the US government to restore sanctions waivers to allow other countries to engage in nuclear cooperation projects in Iran.

Both Iran and the United States have ruled out that the move could mean that the two countries are on the verge of reaching an agreement to return to compliance with the JCPOA.

Indirect talks between the two held since April in Vienna are reportedly planned to resume for a ninth round next week.

Experts believe a breakthrough in the talks would cause the price of the US dollar against the rial to reach as low as 180,000.

The Iranian government has maintained an official rate of US$1= RLS42,000 for funding staples and medicine imports into the country more than three years after rial’s depreciation began when Washington pulled out of the JCPOA and imposed sanctions on Iran.