Iran Currency Sliding – ctd

The Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani said in Tehran that despite CBI’s massive injection of dollar into the foreign exchange markets, the value of the country’s currency, rial, was still trading at nearly 5% below the new official rate. Last week, CBI devaluated the value of rial by more than 11%, to 11,700 rials per dollar, in order to bring the official exchange rate closer to the rates traded in the FX markets. But the slide in rial’s value continued and on Wednesday hit a record low of 12,500, loosing nearly another 7% in value for the just-devaluated currency. The CBI intervention was meant to bring the value of rial close to the official rate, but Bahmani said the result has been “disappointing.”