After unexpected gains in currency rates over the past week, the market returned to stability on Thursday. On the last trading day of the Iranian week, the US dollar dropped below the psychological resistance level of 110,000 rials after having approached 120,000 rials a day earlier.
A so-called ‘smart intervention’ by the Central Bank of Iran, which ensures that currency rates by its affiliate exchange bureaux are not low enough to create arbitrage was the main factor driving down prices.
The gap between CBI rates in the open market and those quoted by street vendors had in the past led to an unprecedented frenzy in buying even by novice speculators with little or no knowledge about currency markets.
The euro was traded for 129,000 rials, down from Wednesday’s 133,000 rials. The gold coin which is directly influenced by currency market also saw a decline with the benchmark Bahar Azadi coin dropping to 37 million rials ($339) from 39 million ($357) rials the day before.