Iran currency continues decline on Monday
The value of the Iran’s national currency continued to decline against the dollar and other foreign currencies on Monday to plunge to a record low against the greenback in the unofficial market, with each dollar traded at more than 110,000 rials.
The rial, which fell to a record low on Sunday, also continued its decreasing trend against the euro on Monday. The euro and the pound were sold at 136,100 and 153,040 rials respectively in Tehran’s unofficial market on Monday, Tasnim News Agency reported.
Gold coin also rocketed up on Sunday to hit 45 million rials. The price of gold coins, minted by the Central Bank of Iran, has almost doubled in the past two months.
Foreign currency began to rise in Iran after the US withdrew from the Iran nuclear deal in May and announced plans to unilaterally reimpose sanctions against the Islamic Republic.
There has been growing demand for the dollar among ordinary Iranians, who fear further plunge in the value of their assets and growing price of goods, even those not imported.
The purchasing power of Iranians has plummeted for the umpteenth time in recent months as wage increases have lagged far behind prices.
In comments this month, the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei reiterated the need for Europe to guarantee Iran’s economic benefits under the Joint Comprehensive Plan of Action (JCPOA), signed between Tehran and P5+1 in July 2015, but underscored that the national economy should not hinge on the fate of the nuclear deal. In a meeting with Iranian President Hassan Rouhani and his cabinet, the Leader called for drawing up a ‘roadmap to stable economy’ in order to resolve economic woes.
Ayatollah Khamenei also called on the administration to bolster the private sector and take strong punitive action against wrongdoers, saying offenders in any position must be brought to justice. Digital currency will be regulated and made official in Iran in the near future, said the secretary of Iran’s Supreme Council of Cyberspace.
Abolhassan Firouzabadi made the remark on the sidelines of the 24th Electronic, Computer and E-commerce Exhibition (ELECOMP 2018) currently underway in Tehran, adding that the decision to this effect was taken during a session of the Supreme Council of Cyberspace on Saturday evening, Mehr News Agency reported.
“Decisions are pointing toward the launch of an official digital currency in Iran,” he noted.
“No decision has yet been taken about which digital currency should be made official in Iran, but it was decided that the Social Commission form a working group to discuss the launch of virtual currency exchanges, data analysis of digital currencies, and which currencies should be made legal in the country,” he said.
He added, “We are also planning to come up with a national and joint cryptocurrency for economic transactions with friendly countries. This issue will be discussed in the next session of the cyberspace council.”
Earlier, Alireza Daliri, the deputy head for management and investment affairs at the Directorate for Scientific and Technological Affairs of the Presidential Office, said a plan to create an indigenous cryptocurrency was already on the directorate’s agenda.
“We are trying to prepare the grounds for the use of domestic digital currency. This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions.”