The Iranian currency rial hit a historic low in Tehran’s foreign currency markets on Saturday, trading at 19,000 rials per US dollar. Rial has lost 7% of its value in January, and is down 75% against dollar compared to January 2011 when it was traded at 10,850.
UPDATE: Iran's semi-official Fars New Agency reports that rial is continuing to lose value against dollar, and on Saturday afternoon was being traded at a new low of 20,000 per dollar.
Photo: IRNA
11 comments:
It's not the rial is any weaker, it's just that the dollar is growing ever more globally arrogant.
Soon 100,000 rials, in all their modesty, will stand up and be counted as worth every bit as much as one of those disrepectful dollars.
"It's not the rial is any weaker,it's just that the dollar is growing ever more globally arrogant.
Etc etc etc...."
Put your money where your mouth is and give your globally arrogant and disrespectful dollars for my modesty rials.
Hypocrite! I know which one you will choose.
I shall. for every 100,000 rials you pass to me I shall give you a crisp dollar bill.....
but this is a limited time offer good for about another week and a half....
I pay a $1.00 a ton for paper.
100 000 rials is not a bargain.
When it reaches 1000 000 rials I will offer you 0.25c for that amount.
Irans currency fall has jumpstarted building boom and massive micro economical investments inside.
People are pulling money out of the banks and buying properties to build .. some of you guys do not want to see but one day there comes the currency reform in Iran and suddenly the whhole thing would see differently.
Your mistake is comparing and judging Irans economy with that of the corrupt and interdependent west.
But thats good carry on.. with your misconceptions.
Dariush London
Anon 5:12 PM
Dariush you've been living in London to long and need to face reality that the Iranian economy is screwed.
There is no confidence in this regime and people are getting rid of their worthless rials for dollars and gold and hording it for the day when this corrupt and inept murderous regime is gone for good.
You should give up your singular battle against the Iranian people with your self deluded regime sponsored propaganda or else you will go down in flames with your beloved Islamic theocracy.
That is an certainty mark my words.
All these people trading rials for dollars to gamble on currency movements are making a mistake in my opinion. This is a hysterial fueled bubble that will collapse to their disadvantage.
"There is no confidence in this regime and people are getting rid of their worthless rials for dollars and gold and hording it for the day when this corrupt and inept murderous regime is gone for good."
Good luck with that investment strategy!
This is no gamble on behalf of the Iranian people but a sure investment in their future as regards the worthless rial.
Traditionally Iranians have always bought gold as security in hard times.
The dollar stands at 2100 rials and climbing and in about two to three weeks time will hit 3000 rials or more hence the panic buying of the dollar.
Bread has doubled in price and the handouts the government was giving out has been ravaged by inflation.
Two years ago it was the students and Iranian middle classes who came out.Now all across the Iranian classes are unhappy and even angry at the dishonesty of this system of government.
"angry at the dishonesty of this system of government."
Everyone knows the currency issues are directly caused by the recent US sanctions on Iran's central bank. This confirms everything Khamenei says about how the US is out to harm Iran and average Iranians. It's also a blatant violation of the Algiers accord which verifies Khamenei's point that the US can't be trusted.
Had this occured without the US sanctions, then Iran's government could be blamed. But now the blame lies elsewhere.
I'll explain it once again:
The Iranian Rial - Dollar (IRR-USD) currency pair and how it's actually valued, is completely irrelevant.
Reason: There is nearly no trade taking place anymore in the IRR-USD currency pair. Trade volume is so low, it statistically doesn't reflect anything else than being low. Keep in mind: Trade volume in the EUR-IRR currency pair is more than a 100 million times the amount of the USD-IRR currency pair !
So if you want to learn something about the true (external) value of the Rial, you have to look at such a high trade volume currency pair like the EUR-IRR, JPY-IRR, INR-IRR, RUB-IRR or the like.
If you look at the chart (link below), you can easily see, valuation in the IRR-EUR currency pair is nearly unchanged since about 2008:
h t t p://finance.yahoo.com/q/bc?s=IRREUR=X&t=5y&l=on&z=m&q=l&c=
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