After hitting a low of $1=IR25,650 on 10 September, the value of the currency strengthened marginally to close at $1=IR24,400 on 11 September and at $1=23,880 on 13 September, according to Iranian website ‘mesghal.com.’ But with the European Union (EU) planning to slap more sanctions on Iran, the dismal outlook for the domestic currency and the economy in general is here to stay.
Apparently there is little that the government can do to reverse this steep devaluation in the short term, as has been demonstrated in last month’s slide in the currency (MEES, 13 August). The rial has lost half its value of a year ago on the free market and is almost double the official reference rate of $1=IR12,260 quoted by the CBI. (CONTINUED - 613 WORDS)
