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Friday, August 7, 2009

Iranian Currency under Pressure

The Wall Street Journal reported yesterday on Iranian economists predicting double-digit currency depreciation by year-end. The forecast is based on the growing level of capital flight from Iran over fears about the country’s economic direction, The Journal reported.

The Iranian government is selling millions of dollars each day to defend the official exchange rate of the local currency, the rial. The current exchange rate has been kept at 9,700 to 9.900 rial-to-dollar. The Journal report asserts that this spending now exceeds the amount of hard currency generated by the sale of oil, country’s major source of hard currency. Naturally such imbalance can not continue for long, hence the expectations for a major devaluation of the currency.

8 comments:

  1. no wonder
    with a 20% inflation, the currency must fall

    ReplyDelete
  2. the auther of this blog has a little dictator inside of him. I asked him what evidence/report do you have that the guys is a former IRGC general and my comment was not approved!

    ReplyDelete
  3. Dear anon,

    First, you probably wanted to post this comment on the relevant post, reporting on $18.5 billion transfer of gold and cash out of Iran. Second, if you go to that post you will see your comment was published 12 hours ago and i had posted my response to it!

    Please see the post, you comment and my response: http://uskowioniran.blogspot.com/2009/08/capture-of-185-billion-in-gold-and.html

    If you choose to offer an apology, you can do so on either of these two posts.

    Thanks,
    nader

    ReplyDelete
  4. Ahmadinejad as a economician pls try to to stabilise ur currency

    ReplyDelete
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    ReplyDelete
  6. Mr Uskowi

    I've tried posting some comments on these pages and they seemed to be rejected.
    I didn't use any swear words or curse at mothers or fathers,just banter and humor but it was rejected,why?
    It looks like I'm wasting my time trying to write then simply rejected.
    Am I not welcome here?

    ReplyDelete
  7. @anon 7:15
    In defense of Nader uskowi, I've had to repost comments at times due to technical difficulties. Please keep your comments coming. They'll be published even if they're not funny.

    ReplyDelete