Sunday, December 14, 2014

Rial Falling

Iranian national currency rial has fallen sharply in value in recent weeks and on Sunday closed at $34,800 rials a dollar.

The rial has lost more than 16 percent of its value this year. The failure of Vienna talks and especially the plummeting oil prices in recent weeks have put significant pressure on the currency. The Rouhani administration is reluctant to defend the rial and burn its limited foreign exchange reserves in the process. But the falling rial could push the inflation rate significantly higher, wiping out recent government successes to slow down the rate.


Anonymous said...

please Mr uskowi
all other currency like € or Yen falling These days against $

Anonymous said...

Let's make some fantazies in that insane situations, created by the West and ask what would happen, if Iran and Russia, as well as some others, would require payments for their oil and gas in precious metals and diamonds ???


Anonymous said...

Iran isn't selling much oil, AF, and isn't going to be selling much oil next year, so it doesn't much matter how they want to get paid.

all they're gonna get is rice and cooking oil and third-rate household appliances.

Nader Uskowi said...

And what's their relationships to Iran? Rial losing value means significant inflationary pressure for the country, as dollar is the currency of exchange for significant part of Iran's export revenues and imports expenditures. Lower the value of rial to dollar, higher the price of imported goods, with effects on prices of all interconnected goods as well.