Thursday, June 28, 2012

Iran Currency Declining As New Sanctions Goes into Effect

Iranian currency rial continued losing its value and was trading at 20,600 rials per dollar on Thursday.

In January, the rial broke through a psychological barrier by trading over 20,000 rials per dollar, prompting the Central Bank of Iran (CBI) to devalue the official exchange rate to 12,260 rials per dollar and increasing the bank deposit interest rate to 21 percent to strengthen the national currency. But in the past two weeks the rial started a sharp decline and yesterday passed the 20,000 mark again.

The new sanctions against the country are triggering the currency’s decline. Today, the new U.S. sanctions against international banks engaged in transactions with CBI went into effect. On Sunday, the EU embargo of Iranian oil and the ban on insuring tankers carrying Iranian crude will begin. 


Anonymous said...

This only affects people who need dollars, i.e. people who want to interact with the world outside of Iran.

How ironic.

Nader Uskowi said...

More complicated than that: the price of imported goods would also rise and all people need to pay more in rials to purchase what they need. Also, many small and mid-size businesses need dollars.

Anonymous said...

What is not obvious to these mullah lovers is that Iran has to use dollars to buy goods from abroad.
Very basic maths,but try telling them that.

Anonymous said...

The level of US hatred and vengeance against Iran must be shocking even the Israelis. Is this all because Iran may, perhaps is likely to be thinking of making a nuclear bomb?

Anonymous said...

Anon 11:07 AM

The US has no hatred towards Iran, but the exact opposite is true of the regime which relies on the hatred and hysteria of its minority of god forsaken followers towards the US and Israel,to maintain its dwindling power base within the country.
No matter how many nuclear bombs the regime possesses it has lost its legitimacy in the eyes of the Iranian people,therefor the bombs are rendered useless.

Anonymous said...

"the price of imported goods would also rise"

Like I said, it only impacts people who want to interact (buy goods from) the world outside of Iran.

Nader Uskowi said...

They don't import goods for themselves, but to sell it inside the country, now at higher prices, which will impact everyone. Unless you are using your sense of humor and sarchasm to make a point.

hans said...

wait for Sunday July 1, then see what happens.

Anonymous said...

hans......Nothing is going to happen on July the first except the start of the new sanctions against the regime.
The dollar will still be there as sure as the world is round.Iran's rial will even be more worthless as sure as the world orbits around the sun.

Anonymous said...

Anon 11:58 PM June 28

"This only affects people who need dollars,i.e. people who want to interact with the world outside of Iran."

"How ironic"

What does oil sell for?


How do governments and businesses buy goods in return for sale of oil?

With Dollars!

So when terrorist theocracy buys wheat from the US (How ironic)they buy in, guess what?.... Dollars!

Since energy is traded for dollars,the commodities is pegged at the dollar rate.

Iran's economy is bankrupt and its currency is worthless.This is the result of a terrorist run theocracy and occupier which refuses to "interact with the world" except for terrorist activities and making the lives of ordinary Iranians miserable.

But at the same time its economy is reliant on the US dollar.

How ironic.