Monday, August 6, 2012

Iran’s Currency In Free Fall

Iranian currency rial today dropped 5 percent in a single day to 21,500 rials per dollar. The collapsing currency has lost 84 percent of its value against dollar since August 2011. 


Anonymous said...

Who was that nutcase on this blog that claimed by July 1st the rial will be the main currency of choice over the dollar?

Anonymous said...

You're quoting the BLACK MARKET exchange rate, which is used e.g. for people trying to illegally send money out of Iran without going through the banks. Of course that rate will be high.

The proper measure of inflation is the purchasing power and I doubt the Rial's purchasing power for goods in Iran has been halved in a few months.

Nader Uskowi said...

That's not correct: the so-called black market rate you are referring to is quoted on official and semi-official Iranian news agencies (IRNA, Fars, Mehr, etc) on daily basis, and on their front pages. It is exhibited on all currency exchange shops. Iranians, tourists or businessmen alike, cannot just show up at their bank and transfer their money on “official” rate. That rate is reserved for government-approved purchases (normally by the government agencies) of large-scale food imports (the use of mechanism by business people close to the government is a source of corruption, buy the goods at :official” rate and sell it at “market” rate). Have you ever tried to send money outside the country through your bank, using the official rate? Or probably you don't live and never visited in Iran?