Sunday, October 31, 2010

Ahmadinejad Calls for Revaluation of Touman

Iranian President Mahmoud Ahmadinejd has directed the country’s Central Bank to revaluate the currency.

“I have asked the Central Bank to fix the exchange rate closer to its real value. Considering the level of our foreign exchange reserves, I believe the real exchange rate (to dollar) is much lower than their (Central Bank’s) 1,600 toumans per dollar rate,” said Ahmadinejad [Mehr News Agency, 30 October].

The Iranian president had earlier announced that his country’s foreign exchange reserves were in excess of $100 billion.


Anonymous said...

Exact link to article PLEASE!

Nader Uskowi said...

(Para# 18)

Anonymous said...

The name or Rial has to be changed into Tuman.

Rial comes from the word royal and Iran is not a monarchy anymore

like calling ones money... "shahi"...remember ??

Sir Dariush Turnhamgreen

Anonymous said...

I agree,Rial must be changed.

Iran never will be a monarchy,again.

Anonymous said...

i have not heard such as 1600 touman for one dollar first rate of exchange rate between 1060 touman or 1050 touman at this time that for clearafication, for mr. ahmadinijad has focuse to creat rerial for higher value as youan of china will be rising in the future iran will be focuse to reach better level on international market his point is by 1404 or 2025 iran will be one of highest quality of life and money management which will surpluse usa and major eu country and value would be much higher than current one in iran.

Anonymous said...

Price of Gold in Oct 2005 was under 500 dollars for an ounce (31.1 Gramm)
now its oct 2010 an we have Gold costing 1350 dollar per ounce.

Dollar is falling apart, and Iran has been changing its reserves permenantly during the last years.

I believe him when he claims a 100 bil. dollar reserve. not much of a big deal.... Saudi Arabia has 400 bill reserves with a quarter of Irans population and no sanctions, meaning Irans economy is strong in its foundation.

Sir Dariush Turnham Green

Anonymous said...

the issue is not what reserve iran has the gornment from 2007 has exchange his dollar to gold as stamate around 600 billion dollar gold in them reserved they are knew what will comming long before in the world ecconomy that why they are in best prepeard as ever before.

Anonymous said...

By any objective measure the Touman is undervalued by around 20% to 30% at least. Iran is holding some of the largest FOREX reserves in the world, well in excess of $100 billion plus another $50 billion plus in the anti-"sanctions" discretionary funds. Iran's energy rich economy with a growing industrial/manufacturing base and a strong consumer base of over 75 million people is indeed resilient and with growing integration with Asia the whole value of the Touman vis a vis other currencies has to be looked as the US dollar is rapidly diminishing and will be further weakened as the US economy implodes and its debt rises.

A substantial amount of Iran's trade with Asia is now bi-lateral in mutual currencies and barter. A real market based benchmark reflecting the real value of the Touman against its main trading partners including the Chinese Yuan, Indian Rupee, Korean Won, Japanese Yen and Euro is a good idea.

Anonymous said...

The USA has only $56B in reserve currency, even this it made by loaning fiat currency to poor third world countries via the IMF and getting real productive dollars. Ever imagine why Britain and the USA are the first to collect donations - because the donations are real money and with the fractional reserve banking can be very profitable. Do not believe me ask your self why the Gates charity foundation prefers the Bottom up approach to the Top down!

reader said...

I think there may have been a mistranslation of what exactly Ahmadinejad said. When he says “1600 toman ke matrah mi konand nist belke bisyar pa-in tar az on ast”, I don’t think he meant Cental Bank but the speculators. However he inadvertently admitted that the current market value for Rial is 1600 Tomans per dollar!

Nader Uskowi said...

He could very meant 1600 toumans/dollar as the current market rate, now wanting the Central Bank to use its reserves to revaluate the currency to probably below 1100 toumans/dollar.

Of course in a country with more than a decade of double figure inflation, keeping the currency value artificially strong is problematic: it will keep imports cheap at the expense of local industry. It will be also a costly proposition for the government, more costly than many subsidies it wants to eliminate.

Anonymous said...

Some days ago, I was reading a short news snippet saying the Iranian central bank just succeeded in swapping 15% of its foreign currency reserves into gold. This would add to the anyway respectable gold stocks of the Iranian central bank, which were built up during several years using a part of the revenues of Iranian oil and gas sales.