Iranian banks have started buying Qatar’s riyal from exporters of goods and services to the Persian Gulf emirate, director general of Trade Promotion Organization for Iran’s Arab-African affairs said.
After several meetings were held by traders, exporters and representatives of the Central Bank of Iran, Bank Saderat and Bank Melli Iran, the process of transferring hard currency resulting from exports to Qatar into the country were corrected and the method of setting the rate for purchasing foreign currencies from exporters were announced,” Farzad Piltan was also quoted as saying by TPO’s website.
He said that from Jan. 28, a day after CBI made the first purchase deal, Bank Saderat changed its base purchase price to the price announced by the regulator. On Monday, Qatar’s riyal gained more than 2% against the Iranian currency and was traded for 250 rials. Oman’s rial grew by more than 4%, reaching 5,000 rials.
As part of its continued pressure campaign on Iran, the US government has issued an advisory to help US financial institutions (particularly banks; money services businesses (MSBs), such as virtual currency administrators and exchangers; and dealers in precious metals, stones, and jewels) better detect "potentially illicit transactions" related to the Islamic Republic.
The International Monetary Fund, in its latest World Economic Outlook, predicts Iran's economy will contract this year and in the following year as a result of the reimposition of US sanctions against the Islamic Republic.
The Iranian currency, rial, is bouncing back against US dollar which has started to nosedive since Monday evening as people have flocked to money exchange markets to exchange their dollars for rial.
Central Bank of Iran new set of policies for managing the currency market was approved on Saturday by the Supreme Council of Economic Coordination.
When the Central Bank of Iran abruptly announced the unification of the US dollar's exchange rate from Tuesday, the gold market reacted swiftly and prices declined.
Governor of the Central Bank of Iran Valiollah Seif said the drastic decision by the government to unify the US dollar’s rate does not mean that a fixed exchange rate system would be at work, as the rate would “fluctuate with market mechanisms”.