After a temporary, artificial levelling, the Iranian Rial has resumed its slide. It fell 5.5% on Saturday, reaching 19000:1 vs. the US dollar. The Rial is almost 50% weaker than in September, when the Central Bank made its last significant intervention to hold the rate.
That intervention, at least through injections of foreign currency, no longer appears possible. And Saturday’s developments expose failure of propaganda and pressure — the Central Bank’s „ordered“ open-market rate of 14000:1, supported by the blocking of websites and threatened arrests of currency traders, is long gone.
The even larger development may be the flight of Iranians from currency into gold. The price of gold coin has been steadily rising all month, but on Saturday it jumped 18%, with old coin now at 930,000 Toman (about $480) and new coin at 922,000 Toman (about $475).