EghtesadOnline: Currency rates and gold coin prices dropped in Tehran’s market last week.
Tehran Gold and Jewelry Union data show the Bahar Azadi Gold Coin was priced at 39.6 million rials at the beginning of the week. Down 3%, it was sold for 38.4 million rials on Thursday's close, the lowest in the past ten months.
The USD was worth 111,400 rials on Thursday's close, down 2.4% compared to the day earlier.
Experts familiar with trends in the gold coin market say declining demand is rapidly bringing down prices, according to Financial Tribune.
Gold purchases are limited largely to those who want to use it as a gift. Due to high prices, many ordinary folks cannot afford gold and prefer other gifts.
Decline in the value of UAE dirham was also seen as a contributing factor to the decrease in Tehran dollar rates.
Each dirham was sold for 30,950 rials on Saturday, down 1,200 rials compared to Thursday’s rates.
Market observers say the stability in exchange rates in recent weeks has had an impact on the market, dragging sellers to the money changers.
The Persian-language daily Donya-e Eqtesad forecast further cuts in the greenback in the coming days (110,000 rials= $1), adding that new trends may appear in the market if rates fall below 110,000 rials.
TGJU data show nearly 16% drop in the average price of euro in the open market in six months. The dollar fell 11% during the same period.
Currencies have seen little if any fluctuations since late March, unlike in the first half of the previous year when the FX market was hit by a tsunami seen never before, thanks to the avaricious middlemen and speculators in gouging prices.
Struggling to boost the national currency, the Central Bank of Iran stepped up efforts in the past months to intervene by increasing supply and pushing for disciplinary measures to curb speculation.
The CBI stepped in following last summer’s deep volatilities after getting a go-ahead by the Supreme Council of Economic Coordination -- an ad hoc economic decision-making body comprising heads of three branches of government -- to intervene and regulate the market.
The decreasing trend in gold and FX markets continued on Saturday.
Bahar Azadi gold coin sold for 38.09 million rials on Saturday, down 310,000 rials compared to the previous day. The Emami Gold Coin was worth 39.01 million rials.
The dollar was sold for 111,380 rials slightly lower than the previous day's 112,050 rials. The euro was tagged at 124,500 rials on Saturday, and the UK pound sterling was not more than 14,565 rials.