Source:

September 29, 2010

Iran’s finance minister says the government may intervene to halt a recent hike in hard currency exchange rates to the riyal.

Shammeddin Hosseini told state radio the increase reflects what’s happening on international markets.

He says if it “becomes a bubble growth, the government will stop it.” He didn’t clarify what this would entail.

The U.S. dollar sold for 12,000 rials in currency exchange offices across Iran on Wednesday — more than 14 percent above Sunday’s rate.

But the Central Bank’s website still gave the official rate at 10,300 rials to the dollar.

Iran claims the rial is grossly undervalued. It has restricted cash withdrawals and ordered banks and exchange offices to report all their hard currency transactions.