Iran’s Economy vs. FX market; Round One!
USD/IRR; Where to?!
By Alireza Hojjatnia
An enigma in Iran’s Economy with no doubt, is the ambivalence in counting for FX rate volatilities. The fact that the rates cannot be predicted even for a short window without speculations is more than enough to make the case concrete solid. Despite the bustle within the acting administration to rein the FX leash over the past few months, recent hikes in USD/IRR rates proved once again that the foreign currency market is not immune to provocative triggers. It seems that the affair between FX volatilities beat and domestic and international political weather is from the heart bottom; a cohesion to lead the market trajectory over short term. Now the question is where on earth this train is headed, specially inches away from the presidential election?