He pays 20% to 25% below the free market rate and benefits from a profit margin just because of the discrepancy between the free market and NIMA. Now, even if the importer does not have the proper links, he can buy a portion or all of the currency he needs via NIMA. Thus, the importer pockets a profit of 500% just by having the right connections to buy dollars at the 42,000 IRR/USD rate. Whatever he imports reaches the end user at free market prices. One does not need an economist to highlight the opportunities for rent-seeking and corruption.Īn importer will do his utmost to receive all or a portion of the hard currency he needs at the official rate, which is one-sixth of the free market exchange.
To all of these, one has to add the official exchange rate of 42,000 IRR/USD, at which the Central Bank of Iran (CBI) will sell hard currency to those who are importing necessities, including food, grain and medical supplies.
In SANA, the exchange rate stands at 228,149 IRR/USD. Then there is SANA where the currency exchangers are required to register all of their trades and the exchange rate they have used. Iranian exporters are required to sell their hard currency in this market, where the exchange rate stands at 184,450 IRR/USD, a decent 20% below the open market rate. There is NIMA, which is the abbreviation for Currency Exchange Unified System. While the Iranian authorities are blaming exporters for the recent fall in the value of the rial, one has to point out that the currency exchange market in Iran favors imports and discourages exports.Īt the time of writing this article, the exchange rate for the rial versus the US dollar stands at 230,940 IRR/USD in Tehran's free exchange market, according to The exchange rate in Herat, Afghanistan, is 247,200 IRR/USD, and in Sulaimaniyah, Iraq, it stands at 254,600 IRR/USD. As a result of this policy, the currency exchange market in Iran is a fractured multilayered singularity, including several submarkets offering ample opportunities for corruption. Consecutive administrations have adopted this approach for the past 40 years, and it has never lowered the inflation rate. In other words, the Iranian government believes if it sets the exchange rate, it is controlling domestic prices. Believing in the myth that if it controls hard currency resources and manipulates the currency exchange rate, it can restrain inflation. The Iranian government is utterly reluctant to adopt a single currency exchange market it has divided the markets and created a puzzling bureaucratic labyrinth when it comes to exchanging currency. As the Iranian government refuses to learn from the past and the present episodes, it is doomed to repeat history. The Iranian authorities and policymakers always search for an individual or a group of individuals to blame for the unfolding crisis, since their adopted macroeconomic policies and monetary measures remain irreproachable. However, the government’s response to the increased ambiguity and volatility cycles remains the same.
The volatility cycles have become a frequent event in Iran’s economy, and no one finds them surprising. This means that this pair is suited as a new addition to your portfolio as trading bullish markets is always a lot easier.The currency exchange market in Iran is experiencing another volatility cycle with the Iranian rial (IRR), losing its value repetitively against foreign currency. This means that if you invested $100 now, your current investment may be worth $187.579 on 2024 June 16, Sunday. These predictions take several variables into account such as volume changes, rate changes, market cycles.įuture currency rate of the currencies is predicted at 79275.652969435 ( 87.579% ) after a year according to our prediction system. Our site uses a custom algorithm based on Deep Learning that helps our users to decide if USD/IRR could be a good portfolio addition for the future. United States Dollar / Iranian Rial has been showing a rising tendency so we believe that similar market segments were very popular in the given time frame. 1 year USD/IRR Forecast: 79275.652969435 *ĥ year USD/IRR Forecast: 312894 * About the United States Dollar / Iranian Rial currency rate forecastĪs of 2023 June 16, Friday current rate of USD/IRR is 42262.50 and our data indicates that the currency rate has been in an uptrend for the past 1 year (or since its inception).
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