• Tuesday, September 26, 2017

Iran rial hits fresh record low

Discussion in 'Middle East & Africa' started by Dawood Ibrahim, Dec 26, 2016.

  1. Dawood Ibrahim

    Dawood Ibrahim SENIOR MEMBER

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    By AFPPosted on: 20 minutes ago

    TEHRAN: Iran's currency plumbed new lows against the dollar on Sunday, continuing a six-month decline that has seen the rial lose some 19 percent of its value despite the lifting of sanctions.

    The rial was trading at 41,300 to the dollar, down from 34,600 in June -- widening the gap with the official government rate which remains fixed at 32,300.

    The decline has quickened since the US election of Donald Trump, who has threatened to tear up the nuclear deal with world powers that removed many global sanctions in exchange for kerbs to Iran's atomic programme.

    Iran's central bank appears to have slowed its interventions without explanation.

    "Before, the central bank was injecting dollars into the market to maintain the level of the rial, but it has greatly reduced its injections in recent weeks," said a currency broker in Tehran, who asked not to be named.

    The tightening of global sanctions in 2012 had a devastating impact on the rial -- which fell to 35,000 to the dollar from around 10,000 just two years earlier.

    Experts say much of the current problem lies with the refusal of global banks to return to Iran despite the end of sanctions -- making it difficult to secure trade and investment deals.

    "The big international banks still refuse to work with Iran, which is preventing the repatriation of petrol money," said the broker.

    The banks are reluctant to engage with Iran's opaque economy and fear they could fall foul of remaining US sanctions that were not affected by the nuclear deal.

    The worry now is the return of high inflation as importers are forced to pay more for consumer goods and industrial parts.

    That would reverse one of the few successes of President Hassan Rouhani's government, whose efforts to rebuild trade ties and improve economic management has seen inflation fall from more than 40 percent to 8.6 percent since he was elected in 2013.


    https://m.geo.tv/#category|latest-news|p124997-Iran-rial-hits-fresh-record-low
     
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  2. TruthHurtz

    TruthHurtz FULL MEMBER

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    Sounds like a deal.
     
  3. Chinese-Dragon

    Chinese-Dragon PDF THINK TANK: ANALYST

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    Yet another reason why countries shouldn't be asking for payments in Dollars/Euros. What's wrong with paying with each other's domestic currencies.
     
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  4. 500

    500 ELITE MEMBER

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    Leveling to the ground entire cities.
    Financing tens of thousands mercenaries.
    Supporting failed corrupt regime and dozens terror organizations.

    All that aint cheap.
     
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  5. tps77

    tps77 FULL MEMBER

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    Infalation in iran is currently very high. Also prices of commodities have sore up in big amount.
     
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  6. like_a_boss

    like_a_boss FULL MEMBER

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    :(

    [​IMG]
     
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  7. Serpentine

    Serpentine INT'L MOD

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    Inflation is now at 8%, so it's not that high compared to many countries, but it can get better.

    And what you said about price of commodities is not true, they go up as per inflation rate.
     
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  8. TruthHurtz

    TruthHurtz FULL MEMBER

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    In fact it is very cheap you tasty-looking Israeli.
     
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  9. Chinese-Dragon

    Chinese-Dragon PDF THINK TANK: ANALYST

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    :o:
     
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  10. xenon54

    xenon54 ELITE MEMBER

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    This forum is amazing. :rofl:
     
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  11. Chinese-Dragon

    Chinese-Dragon PDF THINK TANK: ANALYST

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    Well, amazing is one word I might use. :P
     
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  12. tps77

    tps77 FULL MEMBER

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    Sir prices have sour up look at things like juices,water,bread alot things which directly effects a conmon man but Im optimistic that things may settle down during current gov period cuz elections are around the corners
     
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  13. smuhs1

    smuhs1 SENIOR MEMBER

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    Thanks for creeping him out and every one else on forum

    :o:1 dollar = 45000 IR
     
  14. mike2000 is back

    mike2000 is back SENIOR MEMBER

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    Ahahahahah......I had the same reaction reading that statement. :undecided::cheesy:
     
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  15. friendly_troll96

    friendly_troll96 BANNED

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    :blink::blink::blink: