After a short-lived downturn a day earlier, major currencies climbed again on Monday with the dollar drawing closer to 220,000 rials at the end of trading session. 

After losing close to 9% and dropping to 215,000 rials on Sunday, the greenback fell further at the beginning of Monday’s session and sold for 210,000 rials. The currency was supported at the threshold level as prices resisted more decline.

The dollar eked out gains during the session and finally closed at 219,000 rials, up 4,000 rials, or 1.8%. It had declined sharply a session earlier, riding on the declining expectations spurred by positive economic developments announced by President Hassan Rouhani last week.  

With unofficial reports about Rouhani’s promised “economic relief” becoming public, it seems currency market investors were not impressed thinking that it won’t have a meaningful impact on the forex market. 

The so-called ‘economic relief’ package reportedly pertains to government plans to presale 220 million barrels of crude oil to the people using Islamic parallel salaf contracts. 

The central bank governor, Abdolnasser Hemmati, on Monday said the plan seeks to “control the money supply” and “financing government spending”. He did not elaborate.

The plan was discussed late on Monday during a meeting of High Council of Economic Coordination, the top ad hoc economic decision-making body comprising the heads of three branches of power. What ensued in the important meeting was not known by the time Financial Tribune went to the press.

Gold Dips 

Gold prices followed trends in the currency market in Monday’s early session only to reverse course later. Each Emami gold coin lost close to 1%, or 1 million rials for the day to be priced at 105.8 million rials. 

Bahar Azadi gold traded at 104 million rials, down 1% overnight. One gram of 18-carat gold gained 0.6% to reach 10.34 million rials, according to the Tehran Gold and Jewelry Union. 

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