Iran eases currency rules, hoping to buoy rial ahead of sanctions
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ANKARA - Iran will ease foreign exchange rules, state TV reported on Sunday, in a bid to halt a collapse of the rial currency that has lost half its value since April due to fears about US sanctions likely to be imposed this week.
President Donald Trump's decision to pull out of an agreement to lift sanctions in return for Iran limiting its nuclear programme caused a run on the rial as companies and savers bought hard currency to protect themselves from the economic sanctions that could be imposed from Monday.
The plunge in the currency and soaring inflation have sparked sporadic demonstrations against profiteering and corruption, with many protesters chanting anti-government slogans.
A state body led by President Hassan Rouhani and including the heads of the judiciary and parliament on Sunday partially lifted a ban on the sale of foreign currency at floating rates, allowing exchange bureaux to sell at unofficial market rates for purposes such as overseas travel.
That reverses the decision in April to ban trading currency outside the rate of about 42,000 rials to the dollar
Ahead of the announcement of the new measures, the rial gained slightly on the unofficial market, trading at 98,500 to the dollar, compared with 103,000 on Saturday, according to foreign exchange website Boncast.com.
