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Article: Rial plunges further. (Iran)
- Article from:
- MEED Middle East Economic Digest
- Article date:
- March 11, 1994
CopyrightCOPYRIGHT 1994 MEED Middle East Economic Digest. All Rights Reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The exchange rate fluctuated wildly in late February and early March, sinking t record lows in the free market before recovering somewhat on the threat of central bank intervention. The plunge is attributed to hard currency supply restrictions and low international oil prices.
Bank Markazi vice-governor Massoud Mozayeni blamed speculators and "artificial demand", and said that the government would not remain indifferent. He said on 28 February that the bank was determined to intervene in the market within a da or two. On 1 March, the currency's value rose to $1=IR 2,470 from a low of $1=I 2,700. These rates compare with $1=IR 2,100 in early February, and the official ...