Iran rial stronger after nuclear talks

2013-03-04 16:53
(Picture: Supplied)

(Picture: Supplied)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Dubai - The Iranian currency jumped about 9% against the US dollar because of apparent government intervention and a positive tone at nuclear talks between Iran and world powers, currency websites and Iranian media reported on Monday.

The rial traded around 32 500 to 33 500 to the US dollar in the free market on Monday, compared to about 36 300 on Sunday, the reports said.

The currency lost more than half its value and hit record lows in 2012, battered by US and European economic sanctions which slashed Iran's oil earnings.

But the rial has regained some strength in the past week, rising about 2% last Wednesday after talks on Iran's disputed nuclear programme with a group of world powers, known as the P5+1, in Kazakhstan.

Although no breakthrough was reported in the talks, Iranian officials portrayed them as a positive step.

Since Sunday, the Iranian government appears to have provided larger supplies of dollars to the currency market, boosting the rial, Mehr news agency reported without giving details.

"Those active in the currency and coin markets see the widespread provision of hard currency to the market and the positive environment of negotiations between Iran and the P5+1 group in Almaty as the main factors in the drop in the price of coins and currency," the agency said.

Iranians can exchange their rials for hard currencies through loosely regulated money changers, though the government cracked down on the traders and arrested dozens after the rial's plunge last year.

The Fars news agency quoted an unnamed money changer on Monday as saying the rial's rebound this week had been so strong that many traders had stopped buying and selling currency until prices stabilised.

Read more on:    iran  |  iran nuclear programme

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.