30 Percent Devaluation Expected
The Central Bank of Iran
will officially devaluate the national currency rial, the deputy minister of commerce and industry told Mehr News
Agency today. The official exchange rate is now 12,260 rials per dollar, but
rial is traded in currency markets at the rate of 20,020 r/d, a whopping 63
percent differential. By devaluating the rial, the CBI seeks to close the gap
between the official and the market value of rial and avoid the simultaneous
existence of hugely different exchange rates.
The last time Iran devaluated
its currency was on 26 January, lowering its value from 11,352 r/d to the
current 12,260, an eight percent devaluation. The new official rate was not
announced today, but analysts expect the devaluation to be as large as 30
percent.
Photo Credit: Iranian rial. ISNA
Photo Credit: Iranian rial. ISNA
What a disaster because I can remember when the dollar was 75 rials.
ReplyDeleteAnd Iranian currency was excepted no matter where you were.
You didn't need a visa to the USA and Japan.
Go on say Iran has got its so called independence because it hasn't.
Iran has become a third world country with a forth rate government no better than Somalia.
Disagreement with the government does not require exaggeration and ignoring the truth. Have you been in Somalia? Iran ain’t Somalia!
ReplyDeleteIf managed properly this could boost Iranian exports while decreasing its imports. Now, I'm not saying the state of the economy in Iran is any good, but a devaluation does not need to be a disaster.
ReplyDeleteIf only southern Europe could do the same the whole world could start prospering again.
Devaluation under normal circumstances could help the exports, but the Iranian currency has lost 71% of its value against dollar since August 2011; 71% in just one year. This is not devaluation, it's a free fall. It will shave serious inflationary effects and very harmful for the economy. (Even for the exporters who cannot forecast the exchange rate in near future, not sure when to sell.)
ReplyDeleteMr Uskowi you're right Iran ain't Somalia yet.
ReplyDeleteBut stay tuned because with these idiots in power it's heading that way.
And no I'm not ignoring the truth because the truth is what you see happening already in Iran a disaster.
Anon 6:41 PM
ReplyDeleteYou must be living in a dream world, what exports?
Every damn thing is imported from China including the toilet paper and you're talking about exports?!
This is a good thing, in the sense that those connected elites will no longer have access to ridiculously low exchange rates. Further, this should drive the black market rate down too.
ReplyDeleteAnno 6:41
ReplyDeleteRead here
http://www.presstv.ir/detail/2012/07/30/253530/iran-steel-output-increases-over-40/
at least for the steel produktion we dont need china, Iran steel production surpassed many Europen countries.
the story announced that Iran is still dependent on imported steel and will be for years to come.....and you're calling it a triumph.
ReplyDeleteyou're reading the type of story that used to be reported in PRAVDA and citing a source that's about as truthful.
Anno August 5, 2012 11:34 AM
ReplyDeleteif iran steel needs steel import, means the Economy runs too fast, that Iran need still import
iran has 12 millarden $ non oil Export
The Steel produktion in Iran is surpassed for example po9land, which is hifgh industrialized
Basically right now Iran's entire fortune is tied to Russia and China. As long as those connections exist all these sanctions mean nothing. If those go away it's over.
ReplyDeleteSince they've been dreaming of an Iranian vassal state for centuries, Russia and China will probably turn Iran into their newest state.
Anon 3:41 PM,
ReplyDeleteWhy do we choose godless countries to rule over us? Will we become godless like them?