Official rates diverge sharply from free market valuations
TEHRAN: Iran’s Central Bank (CBI) released its latest official exchange rates on Monday, showing the Iranian rial weakening against most major foreign currencies, including the US dollar, euro and Pakistani rupee.
According to the CBI, one US dollar was valued at 1,436,205 rials, up from 1,421,105 rials recorded a day earlier. Meanwhile, 100 Pakistani rupees rose to 517,104 rials from 511,234 rials, while the euro increased to 1,633,131 rials compared with 1,616,456 rials on July 26.
On the SANA foreign exchange platform, which authorised exchange companies use for official transactions, the US dollar traded at 1,517,870 rials and the euro at 1,725,994 rials.
However, the official figures remained well below prices in Iran’s parallel currency market, where the US dollar was reportedly trading between 1.86 million and 1.89 million rials.
Pakistani rupee strengthens under official rates
Based on the latest official figures, one Pakistani rupee is equivalent to approximately 5,171 Iranian rials, indicating continued depreciation of the Iranian currency against the Pakistani rupee under the official exchange rate system.
Despite this, traders in Pakistan said a packet containing 10 million Iranian rials was still being exchanged in the local open market for around Rs4,500 to Rs5,000, reflecting the substantial gap between official and informal market valuations.
Market participants noted that businesses and households conducting cross-border transactions generally rely more heavily on unofficial market rates than the CBI’s official quotations.
Dealers monitor market direction
Currency dealers cautioned that the wide difference between official and free market exchange rates could lead to increased volatility in upcoming trading sessions.
They said the latest CBI figures would be closely analysed to assess future market trends, although actual exchange rates would continue to depend largely on demand in the informal market.
Dealers also advised individuals and businesses to obtain current exchange rates from licensed and registered exchange companies before conducting transactions, as prices can differ across various segments of Pakistan’s foreign exchange market. They added that exchange rates may fluctuate throughout the trading day in response to market conditions.
