Tuesday 10 April 2018

Vow to End Iran's Black Market Spurs Rush for Dollars in Tehran - Bloomberg

Vow to End Iran's Black Market Spurs Rush for Dollars in Tehran - Bloomberg:

"Iranians flocked to foreign-exchange houses after authorities vowed to halt a currency slump by eliminating black-market rates, only to be turned away by currency traders awaiting instructions from the central bank. Street dealers usually provide an alternative to Iran’s registered banks for Iranians looking to buy and sell dollars or euros. But they were absent from their usual corners in downtown Tehran on Tuesday after the government warned it would prosecute anyone who violated new rules setting the exchange rate at 42,000 rials to the dollar. The currency had weakened to 60,000 rials on the unregulated market this week, a record low. The slide in the rial comes as the Trump administration nears a critical May 12 decision on its participation in Iran’s nuclear deal, and as political feuding at home raises pressure on President Hassan Rouhani to deliver a stronger economy for ordinary Iranians. Traders have also been accused of deliberately driving the currency lower with speculative bets. "



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