Source: Press TV
Iran's exchange markets on Saturday saw a fresh drop in the rates of the US Dollar against the Rial in what many believe is the result of a growing business optimism toward the results of Iran-P5+1 nuclear talks in the Swiss city of Lausanne.
In the first day of trading in the new Persian calendar year of 1394 that started 21 March 2015, each US dollar was traded at 32,750 Rials. The figure marks a drop of 700 Rials compared to the last day of trading of the previous calendar year (18 March 2015).
The drops in the exchange of other key foreign currencies have been slighter. The euro, for example, shed 200 Rials compared to last tradings on 18 March 2015 when the market closed for the week-long new year holidays.
The appreciation of the Rial against the Dollar caught the attention of analysts in the last week of Iran's calendar year when exchange rates dropped by around 13 percent within days.
Apart from growing market optimism toward the outcomes of Iran-P5+1 nuclear talks, this was seen as the result of the satisfactory performance of the government of President Hassan Rouhani in controlling fluctuations in foreign exchange rates as well as the decrease in euro parity rate against the dollar.
The currency indicator
(cartoon by Amin Montazeri, Ghanoon daily)
There were even speculations among analysts that the Iranian market was preparing for the exchange rate of the Dollar to decline to as low as 30,000 Rials and even below if Iran reaches a deal with P5+1 over its nuclear energy program.
However, merchants argued against this by saying that further drops in the exchange rate of the Dollar for the Rial would hurt Iran's exports.
Tehran is currently negotiating with P5+1 group of countries - the United States, France, Britain, China, Russia and Germany - over the removal of sanctions that have been imposed over disputes on the Iranian nuclear energy program. The sides have a deadline approaching within the next several months to reach a comprehensive deal that envisages the removal of sanctions. They are currently negotiating in Switzerland over a framework agreement for the final deal.
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