Gholamreza Mesbahi Moqaddam, the chairman of Majlis Economic
Committee, said today in Tehran that the Central Bank of Iran (CBI) has stopped
supplying the foreign exchange shops with dollars, helping push the national
currency, the rial, into a free fall;
with rial being traded at historic lows against dollar.
Moqaddam did not explain the reasons behind the CBI move, which
according to him started three weeks ago. The dramatic loss of oil revenues,
the country’s major source of hard currency, due to current sanctions, is
believed to be the main reason; CBI seemingly does not have enough foreign
exchange available to defend the value of the national currency.
The private foreign exchange shops are officially licensed to operate
by the CBI and purchase their dollars either from businesses and retail
customers who want to sell or directly from the CBI. But in the country’s
uncertain atmosphere, the tendency on part of businesses and ordinary citizens
is to accumulate dollars and not selling them, making CBI the only reliable
source for the open markets to get the bulk of their foreign exchange supplies. The
CBI also uses these exchange markets to defend the value of rial, by selling
large amount of dollars; a path, however, that it’s been unwilling and now
reportedly unable to follow.
6 comments:
The Iranian currency must be based on Energy (not Gold, not Debt); that would be a real and innovative solution; but it is not clear if the current Regime can pursue a clearheaded policy
http://www.atimes.com/atimes/Middle_East/NI11Ak01.html
With oil revenue less than half of what it used to be, it's not a matter of not wanting to intervene, the ICB simply can't intervene!
Try telling that to the IRI Parasites that the economy is near collapse.
Firing a few missile and launching a rocket into very low earth orbit doesn't mean the economy is well.
That's what the Soviet Union did, only a thousand time better.
End of the day,IF NO BREAD THEN THE GOVERNMENT IS DEAD applies.
Anon 7:28PM
"If no bread the government..."
The government will invent a bread!!!
People who live in the Islamic Republic are smart enough, and by their patience they will waitover any outside stupidities !!!
Anon 4:22 AM
It's easy for a brain washed regime stooge to defend the Ayatollahs incompetence.
But the fact remains:
IF NO BREAD THEN THE GOVERNMENT IS DEAD!
"The government will invent bread!!!"
Ha Ha Ha Ha!!
How can the "government" invent bread when bread was already made 5000 years ago?!
Looks like the "government" is good at inventing lies!
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