As soon as the new year holidays were over, devaluation of Rial was resumed. The exchange rate for one USD at market price reached 62000 IRR, making the gap between the unofficial and official exchange rates to be 24000 IRR, i.e. 63%.
On Monday evening, unexpectedly, the Vice President, Eshaq Jahangiri announced the unification of multi-tier exchange rates to be 42000 IRR for one USD and exchanging at any higher rate will be illegal. Although still several exchange offices refuse selling or buying foreign currencies, but the fact that the government sees the unification of exchange rate as the main solution to stabilize the market is a positive sign.
Furthermore, the trading companies in Iran must solely use the banking system for their transactions which will reduce the physical demand for dollars or euros. Travelers and students at foreign universities can purchase foreign currencies. Keeping more than 10.000 euros per person at home is also illegal and people are requested to deposit their cash at the banks in USD/Euro accounts; a request which most probably will not be taken seriously.
Since some goods such as medicines were imported based on the “official exchange rate”, the government has assigned 30 trillion IRR (715 million USD) to these goods to prevent sudden increase in their prices.
