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| Decline in Iran currency not related to new U.S. sanctions |
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 Iranian Foreign Ministry spokesman Ramin Mehmanparast said the decline in the value of Iran’s rial against the dollar has nothing to do with the new sanctions instituted by the U.S. on Iran’s central bank.The sanctions have yet to be implemented and Iran does not have banking transactions with the U.S. or Britain, Mehmanparast said in Tehran, according to state TV’s news website. U.S. President Barack Obama on Dec. 31 signed into law measures that deny access to the U.S. financial system to any foreign bank that conducts business with the Central Bank of Iran. The rial, after several days dropping, rebounded remarkably against the dollar on Tuesday. Iran’s currency, the rial, rebounded strongly on Tuesday, recovering completely from a dramatic 12 percent drop the day before, according to money changers and media. The rial was trading at 15,900 to the U.S. dollar in the afternoon after it reached 17,000 against the greenback on Monday – a record low for the Iranian currency. Iranian Commerce Minister Mehdi Qazanfari was quoted by IRNA as saying the central bank had been asked “to inject more foreign currency into the market and the central bank has promised to do so.” The Mehr news agency reported Monday that the Central Bank was planning on holding a meeting of experts to discuss the volatility in the currency markets. The meeting was slated for Wednesday. Iranian economists argue that the latest sanctions may not be directly influencing the currency. Banking analyst Farid Ziaolmaleki believes that more Iranians are turning to the currency speculation, buying up dollars, as inflation has outpaced the 12 to 15 percent interest rates offered by banks. (Sources: AP, Bloomberg)
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