EghtesadOnline: As hard currency prices continue on the skyward trajectory in Tehran market the price of computer devices do not want to be left behind. Head of Tehran IT Union says that the prices have shot up 15-20% in the past few weeks.
“The instability in the forex rates has disrupted the market for computer devices and prices have climbed between to 15 to 20%,” Mehdi Mirmehdi was quoted as saying by Iran Chamber of Guilds’ news website.
Reports from the market indicate that after having crossed the psychological threshold of 49,000 on Tuesday, the rial was traded at 47,900 to the dollar on Friday, down from 37,700 in mid-2017.
Iran’s currency has collapsed from 38,400 to the dollar in July and has since hit record lows against the greenback, according to Financial Tribune.
The impact of the volatility in the forex market on the price of computer devices has been significantly pronounced because almost all products sold in the local market are imported.
Mirmehdi says, “No one is buying computer devices. Everyone wants to wait and see whether the prices will come down.”
Simply put, many cannot afford computer devices anymore. “Iran’s computer and smart devices market is reaching a state of stagnancy,” he says as a matter of concern.
Mirmehdi is of the opinion that, “This is a price bubble, and as soon as things settle in the forex market prices of computer devices will recede.”
Speaking with the Donya-e-Eqtesad on condition of anonymity, market insiders blame instability in the currency market as the main reason behind the sharp increase in prices.
“Unpredictable changes in foreign exchange rates have added to the risks associated with investments in imports. Many are planning to close down their business altogether,” one trader told the Persian-language newspaper.
While the plummeting rial justifies the increase in prices to some extent, dealers have also exploited the chaos in the forex market and jacked up prices at will.
This is not the first time that prices of computer devices have risen. As the increase in cryptocurrency mining has created a weird global shortage of graphics processing units, the tsunami in demand has reached Iran with GPU prices jumping 100% over the past month.