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Not mine, brought over by Butifldrm but felt it was relevant to this thread.

 

  pp

 

 

 

the Iranian currency is falling to its lowest level

Iranian currency is at its lowest level
 
 Twilight News    
 
 8 hours ago
 

 

The Iranian currency fell to its lowest level on Monday, as the dollar peaked above 50,000 riyals for the first time, while analysts said this was due to the stern US position on Tehran.

The riyal lost about a quarter of its value in the last six months to reach $ 50,860 riyals, according to the Financial Information Market, a reliable website tracking open market volatility.

The gap continued to widen with the official exchange rate of 37686 riyals on Monday.

The Iranian government took tough measures last month to stem the devaluation of the local currency on the open market, where it arrested foreign currency traders, froze speculators' accounts, raised interest rates and bought millions of dollars in an effort to curb its rise.

Many analysts believe the United States will withdraw from the nuclear deal reached with Iran in 2015 when it is due to be renewed in May, which means re-imposing sanctions, which have greatly affected the Iranian economy.

Iranian officials have complained that citizens are racking up billions of dollars at a time when local banks are short of liquidity.

The devaluation of the currency is a key problem for the government of President Hassan Rowhani, who was hoping to attract large foreign investment after the nuclear deal.

The collapse of the currency would be another expulsive factor for potential investors, who already face major hurdles as a result of US sanctions unrelated to the remaining nuclear file.

 
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Dinar Vets Message Board

Breaking: Iran Government Unifies Foreign Exchange Rates

By blueskyline, 20 minutes ago in Iraq & Dinar Related News 

 

https://financialtribune.com/articles/economy-business-and-markets/84388/breaking-iran-government-unifies-foreign-exchange-rates........

Tuesday, April 10, 2018

Breaking: Iran Government Unifies Foreign Exchange Rates

 
 
 

Iran's government decided to finally put an end to the dual foreign exchange regime, in an attempt to control the bullish foreign exchange and gold markets and promote safety of foreign investments.

The decision was made during an emergency meeting presided by President Hassan Rouhani on late Monday after the US dollar and almost all other foreign currencies hit new record highs against the rial in Tehran's market.

According to Vice President Es'haq Jahangiri who addressed the nation, the US dollar will be offered only at the unified rate of 42,000 rials to everyone as of Tuesday morning and anyone engaging in dealings with any other rate will be violating the law and committing an act of smuggling.

Iran has been operating two exchange rates: a free market rate and an official exchange rate which was set by the Central Bank of Iran on a daily basis and used for state transactions. The government has been working for years to gradually increase the official exchange rate and bring it closer to the free market rate. In order to reach that goal, it has also been shrinking the list of imported items eligible to receive foreign currencies at official rates.

On Monday, the rial's depreciation continued and the currency was quoted at 60,150 to the dollar in the open market, according to Tehran Gold and Jewelry Union's website.

"I assure the people the the government is capable of providing enough foreign exchange resources to the market," Jahangiri added in his address.

He also referred to the government's post-sanctions achievement in attracting billions of dollars in foreign finance resources to the country, and said, "The government is determined to preserve the stability of the economy."

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............. Hey Screwball . Time to get back at it Chief . What do you think is there next move ?
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Not mine, Yota posted. Thought it should be here as well.

 

 
Tuesday, April 24, 1439 - April 10, 2018
9d7ffe53-cc65-4e56-95ed-b2ec7e74a0b4_16x
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Dubai - Arabian.Net

The Central Bank of Iran banned more than € 10,000 from foreign currenciesoutside banks and threatened to sue those who violated the new rules.

The government has unified the price of the official riyal and its price in the parallel market at 42 thousand riyals to the dollar, while the official price before raising it at 37 thousand riyals to the dollar.

The move comes after the fall of the # Iranian riyal in the parallel market in recent days to its lowest levels ever, exceeding 55 thousand riyals to the dollar.

The sharp fall in the riyal market comes in parallel with growing fears that the United States will emerge from the nuclear deal.

Consolidation of the official price, the subsidized price in government institutions and some priority commodity importers with the parallel market price, will revive the black market of the Iranian riyal as speculators will try to take advantage of the high demand for the dollar under a single price that does not reflect real demand.

 

 

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TEHRAN : Iran on Tuesday took drastic steps to control the exchange rate of the Iranian riyal against the dollar in an effort to stop its decline after losing about a third of its value in six months.

The riyal has fallen several times in recent weeks to 58650 against the dollar as financial transactions close on Monday, as uncertainty over the future of a nuclear deal signed by Iran with major powers in 2015 is growing.

After an emergency meeting with the government on Monday night, Vice President Yitzhak Jahangiri announced that the riyal exchange rate would be set at a maximum of 42,000 riyals against the dollar, with foreign exchange offices subject to the control of the central bank.

"Unfortunately during the past few days, there have been incidents in the foreign exchange rate that have caused concern to the citizens," Jahangiri told state radio.

"Uneconomical, unwarranted and unforeseen factors" have caused the riyal to fall, despite the strong performance of Iranian exports.

"We should not see such things in an economy that always has a foreign exchange surplus, some say foreign hands have intervened to stifle the economic climate and some say local plots are being hatched to destabilize the country," he said.

US President Donald Trump has threatened to withdraw from the nuclear deal and impose new sanctions on Iran next month if new restrictions are not put on its missile and nuclear programs.

Analysts say the threat has encouraged Iranians to buy the dollar, hoping to sell it later for gains if the riyal collapses.

Jahangiri warned that the sale of currencies at prices higher than the official exchange rate would be considered "trafficking in prohibited items."

"If they offer another exchange rate in the market, the judiciary and security will deal with it," he said.

The riyal has accelerated since mid-October at a time when the dollar was trading at 40,000 riyals after Trump threatened to withdraw from the agreement on Iran's nuclear program.

If the United States withdraws, it is expected to re-impose the current economic sanctions against Iran, which will affect the country's economy and alienate foreign investors.

The authorities have not set a fixed exchange rate for the euro or the pound, which has made significant gains against the Iranian riyal in recent months.

Edited by pokerplayer
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7 hours ago, pokerplayer said:

'The Central Bank of Iran banned more than € 10,000 from foreign currencies outside banks and threatened to sue those who violated the new rules."

:facepalm2:

tenor.gif?itemid=4670263

 

7 hours ago, pokerplayer said:

"If the United States withdraws, it is expected to re-impose the current economic sanctions against Iran, which will affect the country's economy and alienate foreign investors.":facepalm:

giphy.gif

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financialtribune.com/articles/domestic-economy/85692/accelerate-reforms-if-us-quits-jcpoa......

2018

Accelerate Reforms If US Quits JCPOA

 

Iran’s government will need to accelerate economic reforms, including plans to overhaul its banking system, should US President Donald Trump decide to quit the 2015 nuclear accord with the Islamic Republic, better known as the Joint Comprehensive Plan of Action, according to a senior International Monetary Fund official.

“The possibility that the US walks out of the nuclear deal would increase uncertainty that, in turn, would require some measures to stabilize the market,” Jihad Azour, head of the IMF’s Middle East and Central Asia Department, said in an interview in Dubai on Monday, as reported by Bloomberg.

Trump will decide whether to leave the deal, which curbed Iran’s nuclear program in return for sanctions relief, by May 12. Speculation that he will pull out has added pressure on the Iranian economy, sending the rial down to a record low.

Asked about the potential impact of this on Iran’s economy and currency, Azour said “any step in this direction will increase vulnerability because of the uncertainty that will come with those kinds of changes”.

“Additional vigilance in terms of macroeconomic management is needed in order to weather any negative impact of those policies, and the best way to do it is to accelerate some of the reforms that need to be introduced,” he added.

  Move to Unify Exchange

Rates Backed

Iranian authorities responded with an attempt to unify its two-tier exchange rate, with police also detaining traders who sold dollars illegally.

The central bank then halted its supply of foreign currency “for the time being”, while banning exchange houses from carrying out cash transfers abroad through the popular hawala system, state-run media reported on April 14.

The unification “helps to eliminate distortion and improves competitiveness for the economy”, Azour was quoted as saying by Reuters.

“This should be coupled with maintaining the fiscal adjustment to reduce the level of budget deficit, reforming the banking system, especially banks who are facing difficulties, and allow the private sector to grow.”

Azour said gradually shrinking the budget deficit, which the IMF estimates may widen to 2.7% of gross domestic product next year, would also help the economy adjust.

The deficit stood at 1.9% in 2017.

The rial lost almost half its value since September, partly due to fears of a return of economic sanctions if Trump carries out his threat to exit the nuclear deal.

Iranian authorities last month said they were unifying official and free market exchange rates for the rial in favor of a single rate of 42,000 against the US dollar.

The CBI governor then said the rate would have some flexibility, within a 5-6% range.

Azour said Iranian policymakers need to address problems within the country’s banking system, which currently makes it hard for small- and medium-sized companies to borrow.

The IMF has repeatedly urged the government to urgently recapitalize and restructure lenders.

“If you want to increase the level of growth, you need to improve access to finance and this requires good banking system,” Azour said.

“You need to have a certain level of stability on prices and you need to allow the private sector to be interested in investing.”

  2018 Article IV Consultation With Iran

The International Monetary Fund’s Executive Board concluded the 2018 Article IV consultation with Iran on March 20.

Under Article IV of its Articles of Agreement, IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies.

Following their return, the staff prepares a report, which forms the basis for discussion by the Executive Board.

At the conclusion of the discussion, the managing director, as chairman of the board, summarizes the views of executive directors and forwards them to the country’s authorities.

According to IMF’s latest report, real GDP growth is expected to ease to 4% in 2018-19, as oil production stabilizes in line with Iran’s OPEC cap, and is forecast to average 4.5% over the medium term.

The current account is expected to remain in surplus, as improved oil prices and higher gas exports allow international reserve buffers to rise gradually. Ongoing uncertainty is expected to keep FDI subdued and hamper the further expansion of correspondent banking relations.

The pace of job creation lags what is needed to absorb the large number of new entrants joining the labor market, implying that unemployment could remain above 11%.

The executive directors welcomed macroeconomic progress made by Iran, particularly in broadening the recovery of the non-oil sector, following the lifting of sanctions. However, they noted that a weak banking sector, structural bottlenecks and heightened uncertainty pose risks.

To create jobs for the highly educated youth, improve living standards and achieve higher growth rates, they encouraged the authorities to persevere with prudent policies and pursue deep multifaceted reforms despite the challenging domestic and geopolitical environment.

The directors underscored that financial sector reform should be a priority, in particular recapitalization and restructuring of viable banks, and resolution of non-viable ones. They highlighted that state-controlled banks should start preparing and implementing recovery plans as soon as possible, as they await the initiation of the planned Asset Quality Review.

The directors emphasized that continued efforts to unify the dual exchange rate, together with a clear communication strategy and tighter monetary conditions, would support the transition to a market-based monetary policy framework.

They also highlighted the need to securitize government’s debt to the Central Bank of Iran and provide full autonomy to CBI. They also agreed that the new Central Bank Law should enhance CBI’s autonomy and make price stability the core objective of monetary policy.

The IMF directors recognized the Iranian authorities’ efforts to contain the cash-based fiscal deficit. Going forward, they saw the need for broad-based, growth-friendly measures to contain fiscal deficits and debt as well as to create space for higher social and investment spending.

They underscored that adjustment efforts should be gradual and continue to focus on mobilizing tax revenue, removing exemptions, reducing fuel subsidies and reforming the pension system. They emphasized that targeting cash transfers to the poor will be important to create space and make the adjustment more equitable. They also encouraged the authorities to develop a medium-term debt management strategy.

The directors emphasized that deeper reforms are needed to close the infrastructure gap, create more jobs and further reduce poverty.

They highlighted that reform efforts should focus on diversifying the economy, improving the business climate (especially reducing red tape), modernizing regulations, strengthening the bankruptcy framework and easing market entry.

They encouraged the authorities to facilitate greater female labor force participation by reducing barriers, subsidizing child care to low-income women and tackling informality.

The IMF directors also underscored the importance of improving the quality, timeliness and availability of data.

 
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12 minutes ago, Freedomwish said:

Well my friend Blueskyline, it was either this or blowing cash away in Las Vegas.....who still knows. :confused2:

 

Thanks.

 

Still early yet my friend. All the players have not laid their cards on the table. There may still be a Straight Flush out there, even if it is a long shot. Even a long shot is better than a zero chance. Hang tough as I remember you saying first couple rounds are on you and I plan to collect !!  :)

 

   pp

Edited by pokerplayer
Spelling. What else ?
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On 5/9/2018 at 3:34 PM, pokerplayer said:

 

Still early yet my friend. All the players have not laid their cards on the table. There may still be a Straight Flush out there, even if it is a long shot. Even a long shot is better than a zero chance. Hang tough as I remember you saying first couple rounds are on you and I plan to collect !!  :)

 

   pp

 

I've been already at the bar PP, but I got you! hahaha! :drunk:

 

Thanks :cheesehead:

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://www.flightglobal.com/news/articles/iran-sanctions-may-trigger-currency-shift-dae-chief-448522/.....

Iran sanctions may trigger currency shift: DAE chief

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  • 11 MAY, 2018
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  • SOURCE: FLIGHT DASHBOARD
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  • BY: ELLIS TAYLOR
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  • SINGAPORE

DAE Capital’s chief executive speculates that the United States’ withdrawal from the Iran nuclear deal could challenge the dollar’s status as a global reserve currency, with flow-on effects for aviation.

Speaking at the recent ISTAT Asia event, Firoz Tarapore says that the lessor had tried to position itself for the “unique opportunity” to serve the Iranian market when sactions eased, and expected to see demand for 400-500 aircraft from the country.

Growing rhetoric from US president Donald Trump against the Obama-era Iran nuclear agreement had already caused DAE to change its posture in recent months.

Tarapore says that it would be “problematic now to think about doing business in Iran.”

That is primarily due to the need for any payments from Iranian carriers to be conducted in US dollars, which would break the sanctions and expose companies and banks to massive fines.

But, with the prevalence of cryptocurrencies and challenges from other currencies to the US dollar’s reserve status, Tarapore speculated that they could be used to allow transactions to be conducted “without touching the US dollar payment system.”

“I think this could be one of those unintended, very, very bad consequences for the dollar, which unfortunately has bad consequences for us as well as a dollar-based business,” he adds.

“The world used to be a totally different place when the dollar took its position as the reserve currency. It is so far from that today but the solutions don’t seem to have changed.”

News of the withdrawal from the nuclear accords came before the last day of ISTAT Asia, after Boeing and Airbus representatives had already presented at the event.

Speaking briefly on Iran, ATR’s general manager sales for ASEAN and the Pacific, Christophe Potocki hinted that the manufacturer may look to bring forward some of Iran Air’s orders for turboprops to get more aircraft delivered before sanctions are re-imposed.

“It’s definitely a challenge in the long-term but if you want to be smart, you try to accelerate your delivery span,” he said.

Flight Fleets Analyzer shows that Iran Airhas received eight ATR 72-600s out of a firm order for 20 aircraft, plus 20 options.

Other sources that FlightGlobal spoke with speculated that the sanctions could be a blow to smaller aircraft traders, with Iranian purchasers said to be paying above market rates for some mid- and end-of-life aircraft.

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On 5/11/2018 at 12:05 PM, blueskyline said:

://www.flightglobal.com/news/articles/iran-sanctions-may-trigger-currency-shift-dae-chief-448522/.....

Iran sanctions may trigger currency shift: DAE chief

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E Capital’s chief executive speculates that the United States’ withdrawal from the Iran nuclear deal could challenge the dollar’s status as a global reserve currency, with flow-on effects for aviation.

 

 

The BRICS have been at it for years, longer than zero was in office. 

 

Wait for it... wait for it... waaaaaaiitt...

 

Soon! It will happen /s

 

You know why you don't throw bricks at Isrealis?

 

Because they have guns with bullets and bullets are faster than bricks that are thrown.

Edited by Theseus
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Well, there goes that... :facepalm2:https://www.yahoo.com/news/boeing-says-not-deliver-aircraft-iran-163408191.html

 

Boeing says it will not deliver any aircraft to Iran

04fa4660-8b0f-11e6-8636-cbc0321bcf4b_AFP-logo.jpeg
AFPJune 6, 2018
 
 
Boeing was among the companies to receive US Treasury licenses to begin conducting business in Iran under strict oversight after sanctions were eased
 
Boeing was among the companies to receive US Treasury licenses to begin conducting business in Iran under strict oversight after sanctions were eased (AFP Photo/Jason Redmond)
More

New York (AFP) - Boeing will not deliver aircraft to Iran in light of US sanctions, effectively aborting a pair of large contracts with Iranian carriers, a Boeing spokesman said Wednesday.

"We have not delivered any aircraft to Iran, and given we no longer have a license to sell to Iran at this time, we will not be delivering any aircraft," the Boeing spokesman said.

"We did not factor the Iran orders into our order backlog either."

The announcement follows President Donald Trump's decision last month to pull the United States out of the landmark 2015 nuclear accord between Iran and major powers that had cleared the way for a relaxation of sanctions on Iran.

Boeing had previously said it would respect US policy on Iran and had pushed back the delivery dates on the Iran planes without commenting directly on deliveries.

Boeing and Airbus were among the companies to receive US Treasury licenses to begin conducting business in Iran under strict oversight after sanctions were eased.

Boeing in December 2016 announced an agreement to sell 80 aircraft valued at $16.6 billion to Iran Air. Boeing also announced a contract in April 2017 to sell Iran Aseman Airlines 30 Boeing 737 MAX aircraft for $3 billion, with purchase rights for another 30 aircraft.

Last week, a person close to the matter said engineering giant General Electric would cease all activities in Iran by November 4 and meet a 180-day deadline set by the Trump administration to exit the country.

 

Edited by Freedomwish
Need something stronger than whiskey
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