The value of Iranian Rial is rising, amid hopes of victory for Biden

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The unstable Iranian Rial rose to its highest level in six weeks against the US dollar on Saturday, boosted by the central bank’s injection of funds, and hopes of easing US sanctions after a likely victory for Joe Biden In the coming presidential election.
The foreign exchange website Bonbast.com said that the dollar is being sold at about 268,000 riyals in the informal market, down from 281,000 riyals on Friday. The website of Dunia e-Eqtisad newspaper also showed that the price of the dollar amounted to 268 thousand riyals, down 12 thousand riyals from Friday.
Iranian media quoted analysts as stating that the Rial rose in part in the hope that the Democratic candidate Biden, who may reduce the sanctions that have crippled the Iranian economy, will win against Republican President Donald Trump in election.
However, the Iranian Rial lost about half of its value in 2020 because o the economic impact of US sanctions and the Corona virus pandemic, which has recorded the highest number of deaths from Covid-19 in the Middle East.
“If Biden is elected, this may create a psychological atmosphere that may lead to a rapid decline in the (dollar) price, but I think this decline will be temporary,” analyst Sohrab Ashrafi told the website.
The Central Bank of Iran published on its website on Thursday that it had pumped an average of $ 70 million per day into the currency market in the past week.
So far, many opinion polls appear to show that Biden is ahead of Trump. But a presidential candidate can win the popular vote but lose the election.
This event happened in 2016, when Hillary Clinton led in the polling data and won the popular vote, but Trump became president because of the Electoral College.
This is an American system that allots electoral votes to the 50 states and the District of Columbia. There are 538 electoral votes, and a presidential candidate has to secure 270 to win the race.
So despite Biden’s lead in the opinion polls, there is a looming sense of deja vu.
But there is also a “big difference now”, says Mahbubani. “Trump’s made it very clear that he doesn’t think he’s lost the election. He may not accept the results, and that’s something that America’s never faced before,” he says.
The use of postal ballots, which Trump has attacked, may be the spark for an electoral controversy. And a wave of uncertainty caused by a protracted stand-off can cause chaos and volatility in the markets and beyond.

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