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Iran's currency market experiences significant fluctuations

In Tehran, the currency market commenced the new Iranian year with a notable surge in exchange rates. The US dollar achieved a historic peak in Tehran's currency trading hub on Ferdowsi Street, surpassing the IRR 630,500 mark, a 2.1% increase from the previous day. This rise breached a significant psychological threshold.

Stability was observed briefly in early March when the Central Bank of Iran intervened by injecting the Emirati dirham to satisfy the heightened demand for foreign currencies. The dirham's value also escalated to new heights, exceeding IRR 173,500, up by 1.5% from the day before.

With the commencement of the short trading week, individuals flocked to Ferdowsi Street, aiming to purchase dollars and other foreign currencies in anticipation of a potential increase in the dollar's value. This followed a bank holiday for Nature Day and occurred against a backdrop of regional tensions exacerbated by the recent killing of Iranian military personnel in Syria.

The demand for the US dollar had already been rising during the holiday period, as indicated by trends on black market websites. This demand contributed to the dollar's upward trajectory since the start of 2024, with the currency achieving successive record highs and registering nearly a 20% growth since January 1, 2024.

Source: intellinews.com

Photo source: Dreamstime.com

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