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Iran Rial Strengthens after "Positive" Nuclear Talks - ASHARQ AL-AWSAT English Archive
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Iranian banknotes and foreign coins are displayed by a vendor on a side walk of the Ferdowsi Street in Tehran, Iran. (AP)

Iranian banknotes and foreign coins are displayed by a vendor on a side walk of the Ferdowsi Street in Tehran, Iran. (AP)

DUBAI, Reuters—The Iranian currency jumped about 9 percent against the U.S. 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 32,500-33,500 to the U.S. 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 U.S. and European economic sanctions which slashed Iran’s oil earnings.

But the rial has regained some strength in the past week, rising about 2 percent last Wednesday after talks on Iran’s disputed nuclear program 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 stabilized.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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