BUSINESS

Report: Iran inaugurates new currency trading centre to undercut black market

09/23/2012 09:00 EDT | Updated 11/23/2012 05:12 EST
TEHRAN, Iran - Iran's state radio is reporting that the country has inaugurated a new hard currency trading centre to undercut the black market.

Under the supervision of Iran's central bank, the centre will offer U.S. dollars at 2 per cent less than the street rate to importers of the country's needs, from the veterinary industry to printing machines, according to the Sunday report.

The U.S. dollar is traded at 24,600 rials in the street market. But the current official rate is 12,260 rials to the dollar, used only for special purposes such as importing food and medicines.

Iranian currency has been heavily hit by Western sanctions over Iran's nuclear program. The West suspects Iran is aiming to build nuclear weapons, a charge Iran denies.