Fars News Agency reported today that despite the recent aggressive moves by the Central Bank of Iran to maintain a single exchange rate for the country’s currency, the rial continues to be traded in the free currency markets at rates much lower than CBI’s official rate of 12,260 rials per dollar. On Monday, the rial was being traded at 18,500 per dollar, more than 50% lower than the official rate. The country’s standard gold coin was also traded at 8,500,000 rials, or 22% above the official rate.
11 comments:
It's 1980s all over again, soon the government will outlaw all currency tradings thus by creating a currency black market.
Ironically the regime will benefit for a few months of this crisis as hey would be paying salaries in rial using petro dollars exchanged at a high exchange rate.
Come march, it's a different sort all together. Once the regime stopps paying the basij, including he cyber basij, we will see a different iran.
its artificial just keepin it up to get rid of the extra buck havin been bought.
Want a real deal, check its rate with other currencies and not just the dollar/Euro/ pound.
strange the gold price difference is far lower, gold price is the benchmark for real value of currencies in a economy in today world anywhere
people who buy dollars must be punished and encouraged and told to buy other currencies beside the dollar because it seems iran has a bunch of western minded delinquents that buy dollars without thinking of whats actually keep there real value and that's other currencies such remnimbi and such
i think iran should also consider a clandestine fake dollar program since that's what they are doing to Iran
the fact that dollars are relatively more valuable than gold is bizarre.
Stranger
You say Iranian people should be punished for buying US dollars and instead they should buy other currencies.
You have an leftest anti Western attitude which you transfer into supporting a fascist theocracy just because they supposedly are against the US since their inception.
People like you will support any regime that apposes the West even if it means regimes like Stalin's Russia or NAZI Germany.It doesn't matter as long as they are anti Western it's alright by the likes of you.
The Iranian people are doing the right thing because they no longer have any faith in the bankrupt and worthless Iranian currency the rial.If that offends you and makes you come out with pathetic and nonsensical comments then hard cheese because at the end of the day the Iranian people are trying to save what ever savings they have remaining and converting it into a popular currency and that is the US dollar or the British Pound.
It's easy for some non Iranian anti Western wanna be living in the west to tell the Iranian people to sacrifice their savings because of a bankrupt and dying regime occupying our country.
Go and find another cause celeb elsewhere.
its artificial and those buying now must need it but as a business transaction its a silly move.
Dollar in Iran is a speculation thing... very risky to deal on, should you be living off the exchanges.
Annon 9 am
I think the Market is right in valuing the dollar higher than gold, simply because dollars can be moved out of the country and gold can't.
This trend actually shows that most Iranians and the market don't feel that Iranian banks are stable enough to deposit dollars in, as they don't feel secure in the thought that they can get their money back when they make a withdrawal a year from now.
One thing to keep in mind that markets are apolitical and are only based on facts on the ground. It is not possible for the west, or Iran for that matter, to manipulate the markets, short of seeing or buying dollars in the Tehran currency market.
"You have an leftest anti Western attitude"
obviously your someone who will bow down to the devil if he offered you hedonism at expense of anyone else,
you caught im not a liberal i despise them because like what you said of me they are simply hypocrites as the great majority of German freedom loving liberals embraced nazism if they get the oppertunity
simple answer yes the government of iran is so simple as you put it just a theocracy and whatever else so its bad and its the worst
that doesn't answer the reason Ahmadinejad was elected in 2005 even if you don't except 2009, Iranian governing system isn't a too bit system for some private interests groups or a dictator and the Iranian people know that its much comparable or superior to western countries in certain aspects of accountability, reduced corruption and economic fairness with a drive for development
i don't support tyrants whatever ideology they use, the ones who murder, cheat, steal and oppress in the name of freedom and democracy are the worst as liberal systems often do
but you have to be realistic with the world and the Independence of Iran from the tyranny of the global hegemony of the west is a price that will be worth it in the long term for Iranians and rest of the middle east and Asia, in terms prosperity even if that means no right to have strip clubs or wearing miniskirt
"markets are apolitical and are only based on facts"
im sorry that's not exactly true, otherwise china would be nowhere to where it is today
markets can be manipulated to an extent and in certain cases carefully
even if you believe in non intervention in the markets, the case of Iran is not due to economic intervention is due to foreign intervention so
yes markets eventually come in on there own but not in cases when economies are effected by factors that hinder the market in unsuspecting ways the only remedy for that is government action because those situations are usually in cases of national emergency as in the case of sanctions and war
and gold price discrepancey with the value of the doller in iran current world economic situation is truly bizarre
Stranger
The devil rules in Iran.You know absolutely nothing about the real situation in my country. Either you watch Press TV or some other propaganda nonsense coming out of that regime or elsewhere.
Your assumption that the Iranian people need to be punished for simply buying dollars is ridiculous at the least.
The regime serves the interests of the mullahs and their henchmen and they have turned Iran into a giant mosque.
Iranian people do not except this anymore,they want secular state with religion in its place with freedom of choice.If you can't except this then that is your problem because Iranians will change the system in our country.That has always been the way when our governments don't listen to our needs.
I don`t speak on many sites that I come across but I felt I couldn’t pass up the opportunity with this one. Excellent post. I can only imagine what you will be writing in the future.
Thanks.
All u people have to understand that Iran is in an economy of war and in a financial war. The economy is speculative and the iranians are running for dollars becausea fear very contaguis than can put the rial too the floor. What Iranian should do like a goverment is YES punish in someway the buy of dollars if not the economy gonna explode an in anymoment gonna all the iranians gonna be forbid to take money out of the country of even in a major state out of the bank if the speculation continues. If not see the cases of "corralitos" in Argentina 2001, Brasil, and Argentina right now. Check in google CORRALITO and then u gonna see what gonna happen to Iranian people if they still in this path.
In my point of view the goverment is being to SOFT with this situation. And this is not ideological thought. This it is call BASIC MACROECONOMY !!!
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