Credit: Iran has operated two exchange rates, one is the 'official' rate set by the country's central bank (and used mainly for state transactions).
The other is a free floating rate (used for private transactions).
The two trade at different rates (state transactions are at a more favourable rate than those private firms have to deal at.)
Reuters report on moves by the country to bring the two rates closer and to now allow freer trading of the rial: Iran allows free foreign exchange at banks in move to unify rates
Politics and trading restrictions play a huge role in the IRR rate, but the currency has not been immune to the broad USD strengthening
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
