The Iranian currency, rial, strengthened on the open market today, trading at 33,400 rials a dollar. The new rate represents an 8.5% appreciation in relation to dollar since Rouhani’s victory in 14 June presidential election.
On Saturday, the Central Bank of Iran (CBI) devaluated the official rial rate by more than half, from 12,260 to 24,777 rials a dollar. The official rate is now closer to open market rate. The official rate is in fact a subsidized rate available only to selected importers of basic commodities and medicine. The great majority of importers and ordinary citizens are not eligible for the subsidized rate and need to purchase their dollars in open market.