Former Central Banker Says Lack Of Optimism On Nuclear Talks Drives Iran's Currency Lower

Lack of optimism in the outcome of nuclear talks is the reason why Iran’s currency has declined in recent days, a former deputy of Iran’s Central Bank has said.

Kamal Seyyed-Ali former director of the central bank’s foreign currency desk on Tuesday told Khabar Online website in Tehran that the news about resumption of nuclear talks at the end of November has not convinced currency dealers and the public that economic conditions will improve.

Iran International reported Sunday that Iran’s rial had dropped to 280,000 against the US dollar, despite confirmation last week that multilateral nuclear talks will resume in Vienna, where an agreement could remove US economic sanctions imposed on Iran since 2018.

The former central banker said that conditions Iran is putting forward might not be accepted and this “increases nervousness among dealers” regarding the value of the rial. He added that in the absence of oil exports and foreign currency inflows, the smallest demand for dollars boosts its exchange rate.

Seyyed-Ali said that the fall of the rial during President Ebrahim Raisi’s first hundred days “is not a good sign” and it shows the market’s reaction to negative posturing by officials over the nuclear deal (JCPOA).