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Iran Drops Effort to Set Single Exchange Rate as Rial Sags

Iran formally opened a secondary market for hard currency Tuesday, abandoning after three months an effort to dictate a single exchange rate for the rial against the dollar as the threat of U.S. sanctions pressures the Iranian currency.

The new market will cater to small exporters and importers from the private sector, the Tasnim and Fars news agencies reported. Fars said the first transaction exchanged rials for United Arab Emirates dirhams, at a rate equivalent to 75,000 rials to the U.S. dollar.

A central bank official said the secondary market would allow exchange rates to fluctuate freely.

“The price of the foreign currency …read more