IRR: Steady Depreciation Beckons

Despite bouncing somewhat in December 2008, the Iranian rial has resumed its depreciatory trajectory in line with our bearish view and has once more fallen through the psychologically important IRR10,000/US$ level, trading at one point on January 15 at IRR10,027/US$. With little hope for a rebound in global oil prices in the short to medium term, upside pressure on the unit is likely to remain weak and we thus anticipate steady, though volatile, depreciation to continue through 2009.

To read the full article, please choose one of the following options: