The Iranian rial (IRR) is the national currency of the Islamic Republic of Iran.
Although the rial is not officially pegged to another currency, its value has remained stable at around 42,000 IRR per US dollar over the past few years.
Iran’s economy is largely based on refining and exporting oil, but economic sanctions due to its nuclear program have undermined its position as a player in global finance and trade.
IRR is sometimes considered a locked or non-convertible currency because it does not trade freely on the global foreign exchange market.
In Iran, laws have been discussed and adopted to replace the rial with toman, although this has not happened yet.
The Exchange Rate Mechanism (ERM) is the way in which governments can influence the relative price of their national currency in foreign exchange markets.
A horizontal spread is a simultaneous long and short position in derivatives for the same underlying asset and strike price, but with different expiration dates.
An indirect quotation in the foreign exchange markets expresses the amount of foreign currency required to buy or sell one unit of the national currency.