In recent years with sanctions on different sectors of Iran`s economy, transferring money has become such a hard issue for investor and business men who import goods to Iran and because of that we have two different rates for USD/IRR. CTC rate which is lower than market rate is for providing necessary goods and services. With relief of sanctions and reaching an agreement by Iran and P 5+1, lots of Iranian resources outside country which is estimated to be around USD 100 bn will be available to Iran`s economy and government is planning to unify these rates for USD/IRR after the agreement.
Central bank of Iran has publicly expressed its belief that USD/IRR rate should be based on purchasing power parity but declared a policy of not interfering in the market exchange rate while closely monitoring it to prevent undesired fluctuations. In addition, CBI has maintained the interest rate on deposits high.
As a result USD/IRR has risen with a moderate slope despite DXY strong performance since 2014 and even had negative slope from January as negotiations between Iran and p5 +1 approached its deadline on April 2015.
Figure 1-18: Comparison of inflation, annual interest rate and bond (sukuk) rate in recent years
Source: Central Bank of Iran
Figure 1-19: USDIRR
Figure 1-21: Rial value in relation with EUR & USD