2024-04-05T19:47:13+00:00
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/ The Iranian riyal collapsed in an unprecedented manner against foreign currencies, against the backdrop of the repercussions of the Israeli attack on the Iranian consulate in Damascus.
The price of one US dollar as of Friday, despite the closure of most banking centers, reached 650 thousand Iranian riyals, while the price of the euro reached 701 thousand riyals, and the price of the British pound reached 820 thousand riyals. What affected the gold and car market in the country.
The price of the dollar before the tension with Israel was 600,000 Iranian riyals in the free markets in Tehran.
The Iranian newspaper “Doniai Eqtisadi” indicated, in a report yesterday, Thursday, that the price of the dollar could reach about one million Iranian riyals in the near future.
The “Erem News” website quoted the economic expert, Baroz Haq Shinas, as predicting that the dollar will continue to rise until the end of this April, in light of the political tensions occurring in the region.
Schnas believes that the possibility of Iran’s response to the Israeli attack is the reason for the rapid rise in prices in the two important currency and gold markets.
“Due to the shaky state of the country’s economy, any reaction from Iran could increase the price of the currency and create turmoil in other markets in the country,” he said.
Some experts identified the rise in the price of the dollar coinciding with the Iranian New Year. Due to the continuation of international sanctions and the government budget deficit, the tension between Tehran and Tel Aviv is another factor in the collapse of the Iranian currency.
Nader Badr Afshan, an expert in banking and jewelry sales, estimated in his interview with “Erm News” that the price of the dollar would reach around 700 thousand riyals, noting that “it is possible that the price of the dollar will reach one million riyals in the second half of this year, as some indicate.” Government-affiliated media.
Regarding the reason for this rise in the foreign exchange market, Afshan explained that “most of this rise is due to the government’s large budget deficit.”
He expressed his astonishment at the silence of the government of Ebrahim Raisi regarding what is happening in the currency market, and said: “Neither Ebrahim Raisi nor any of his government’s economic directors, since last Tuesday, when the value of the Iranian national currency decreased again, have reacted to this event. The economic situation has become More dangerous”.
In the gold market, Nader Bazar Afshan explained that “the collapse of the Iranian currency caused a rise in gold prices, in addition to the news and political crises in the Middle East that affected the market and caused prices to rise in the gold and coins market.”
He said, “Buying and selling have not changed,” and he believes that “the prices we witnessed today for gold and coins are false, and we recommend that people postpone purchasing until prices are relatively stable.”
He noted that the rise in the price of the dollar will directly and indirectly affect the rise in prices in economic sectors, from markets to services, pointing to the significant increase in car prices.
The Iranian economy faces profound issues, such as increased liquidity, government budget deficit, negative trade balance, and declining income from exports.
In this regard, economist Biman Mawlawi said that inflation could reach 40-45%.
Speaking to Erem News, Mawlawi pointed out that with the draft budget law for the new year, the deficit will be a very high number. Which will undoubtedly lead to an increase in the inflation rate.
He noted that the increase in inflation in the absence of any support program for citizens by the government means the spread of poverty, pushing more families below the poverty line.
A number of marketers and economic activists in Tehran reported that due to the rise in the price of the dollar in recent days, and the possibility of continued rise in foreign currency prices, various consumer goods in the Tehran market have become approximately 20% more expensive within 72 hours.