Saturday, September 29, 2012

Rial on Downward Spiral

The value of the Iranian currency, the rial, continued its downward spiral on Saturday, posting at 27,900 rials a dollar, a historic low. 

In September 2011, the currency was traded at 12,000 rials a dollar in open trading, now at 27,900; a loss in value of 132 percent in the past twelve months. 

Photo: ISNA.


Unknown said...

The next shoe to drop is when the regime stops foreign currency withdrawals from foreign currency accounts in Iranian banks.
I wonder what the public reaction will be when people are told to withdraw their dollars in rials using the official exchange rate!

Anonymous said...

Nobody in Iran cares, except those who want to buy foreign goods or send money overseas, i.e. Iranians who do not matter to the regime.

Do you have business in Iran or somehting?

Unknown said...

@anon 3:11
I assume the question was directed at me.

You may not know this but Iranians have been turning their savings into dollars in order to avaoid having them wiped out by depreciation. Many of these dollars are deposited in hard currency accounts at Iranian banks, and the promise of those accounts is that the citiznes can withdraw their dollars in dollars.

My point here is that the regime has been spending these dollars and won't be able o pay the people when they make a run on the banks or simply sporadically ask for their dollars back.

Needless to say that the above situation has nothing to do with me personally.

Anonymous said...

This is a great victory for the regime and will allow the Iranian people to have a new, cheap and patriotic way to paper their walls!

Anonymous said...

It's illegal to hold dollar savings accounts in Iran, which is why again the government of Iran does not care about that.

This is a complete red herring to analysis of Iran.

Unknown said...

Again, your entitled to your own opinion but not your own facts.
Maybe some in the regime chose to be willfuly ignorant about them, but Foreign currency accounts have be an option for Iranians for decades now.

Anonymous said...

You're an ignoramous. You can get hung, theoretically, in Iran for accumulating foreign currency. Only a few people have a license to open such accounts.

Unknown said...

The foreign currency accounts went from being illegal to only available for some in less than an hour!

I admire your confidence as you argue something you clearly are just know learning about.

I agree that many can hang, literally, at the drop of a hat in Iran, but that's another subject for another time.

Unknown said...

@anon 6:07
Here is Iran's Bank Meli website information about foreign currency accounts in case you need more information on the subject.
Signed "ignoramus"

BMI Services
Foreign Currency Accounts
Qarz ul-Hasanah Foreign Currency Current and Savings Account
Long Term Foreign Currency Investment Deposits
Short Term Foreign Currency Investment Deposits
Opening Account for Corporations Domiciled in Iran

::: Foreign Currency Accounts :::

Types of foreign currency accounts
The BMI not only have in regard various foreign currency facilities,but also presents varieties of foreign currency services to it's customers by using new international banking standards and taking advantage of up to date technologies and entering the course of E-banking enterprise.
Here are varieties of foreign currency accounts for esteemed customers and clients:
- Foreign currency Qarz ul-Hasanah savings accounts
- Foreign currency Qarz ul-Hasanah current accounts
- Term deposits
Services that can be rendered to owners of Qarz ul-Hasanah savings and current accounts:
- Receipt and delivery of foreign exchange transfers through inland and foreign banks.
- Cash receipt out of deposit funds
- Transferrance of foreign exchange funds into real and corporate persons' accounts with other BMI Branches and other banks.

Services that can be rendered to owners of foreign exchange term deposits:
The depositor can deliver his deposit contract to the Bank to receive facilities or foreign
exchange letter guarantees or those of rial as a pledge or a bond