Iranians take to the streets after drop in price of dollar

Iranians take to the streets after drop in price of dollar
ID : N-3034 Date : 2018/10/02 - 10:28

(Persia Digest) – The rate of USD against the Iranian rial reached new historic peaks in the Iranian economy last week. But it has taken on a downward trend over the last couple of days. Following Rouhani and Trump speeches at the UNGA last week, the dollar reached the unprecedented price of rials 200 thousand (20,000 tomans). But it has seen a drop over the last couple of days, and since last night in particular, making for an uncomfortable night on the forex market and among ordinary people who had converted their money into dollars.


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The new dollar price stands at rials 138 thousand (13,800 tomans). Reports from cities across Iran say that long queues have formed outside foreign exchange offices by people who wish to sell their dollars to prevent further loss of their savings.

Many people in large cities spent the night outside exchange offices on the streets.

People rushing to sell and buyers refusing transactions has confused and worried people in Tehran, Ahvaz, Baneh…

The drop has entailed various interpretations. Some say it is due to talks about joining the FATF; others say it is due to market saturation and a prolonged rise in prices and lower demand.


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Other reasons are listed as a reduction in mental stresses, the impact of the European Union's SPV for trade with Iran, seven European central banks working with Iran, and the Central Bank of Iran (CBI) stepping in to manage the forex market.

But, the view of the general public is that a slight increase in price will lead to even further price rise, hence the rush to buy - this in itself upping prices.

In contrast, with a small drop of a few days, they make a U-turn and become sellers instead of buyers. As such, a drop in demand and rise in the number of sellers lowers the price.

Click here for more economic news.

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