Central Bank of Iran: We can not provide hard currency

[yota691]

Kd : 82884630 (6461504)

 Date: 2018/04/12 Time: 13:14 

 

 

During the meeting of the Economic Committee of the Government;

The President of the Republic strongly advocates new policies on foreign currency

TEHRAN, April 12 (Itar-Tass) - The head of the republic, Hassan Rowhani, said that all the agencies are in charge of cooperating with the Central Bank for the strict implementation of the instructions on foreign currency, adding that concerns about the rise in commodity prices have been removed by providing foreign currency for local production at the declared exchange rate of the currency Hotfile.

This came during a meeting of the economic committee of the government, which was held Thursday morning in the presence of President Hassan Rowhani, during which the discussion and ratification of the instructions related to the policies adopted with regard to the management of the foreign exchange market. 
During the meeting, they discussed and decided on the instructions based on the policies of the foreign exchange market for travel, students, treatment and all service and commercial expenses. 
Done ** 1718

[blueskyline]

www.tasnimnews.com/en/news/2018/04/11/1698412/iran-serious-in-replacing-us-dollar-with-euro-in-transactions-official...

Iran Serious in Replacing US Dollar with Euro in Transactions: Official

TEHRAN (Tasnim) – Governor of the Central Bank of Iran (CBI) Valiollah Seif said the country’s cabinet members plan to approve a plan to replace the US dollar with euro in transactions with foreign countries.

• April, 11, 2018 - 19:20 
• Economy 
• Comments 
•  

 

 

 

The issue of changing the currency used in foreign transactions from the US dollar to euro is serious and its plan will be approved by the cabinet in the near future, Seif told reporters on the sidelines of a cabinet session in Tehran on Wednesday.

He further pointed to the administration’s decision to unify the official and open market exchange rates and said it has had positive effects on the country’s economy.

The measures taken to control the currency market have short-time and long-time effects, the official said.

He went on to say that ruling the country’s economy and preventing it from being vulnerable to the enemies’ conspiracies are among the long-time effects of the decision.

Speaking at an open session of the parliament on Tuesday, Seif explained about the currency slide in recent days, during which the US dollar jumped up to 60,000 rials in the open market in Tehran while it was worth 36,000 rials in mid-September.

He pointed to the administration’s policy to unify the official and open market exchange rates, saying that the price of the US dollar would be 42,000 rials in both markets as of Tuesday.

The Iranian official further pointed to his meeting with Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei about the currency slide on Monday and said during the session, he put forward a plan to replace the dollar with euro in foreign exchanges, which was welcomed by the Leader.

The Iranian rial hit a record low against the US dollar for the second time in two months in the past few days, prompting some currency dealers to suspend trading.

[blueskyline]

://www.cnbc.com/2018/04/12/irans-currency-crisis-brings-it-one-step-closer-to-economic-collapse.html.......

Iran’s currency crisis could bring it one step closer to economic collapse

• Iranians are scrambling for U.S. dollars as Iran's currency, the rial, plummets to historic lows amid economic and political uncertainty.
• The rial has lost one-third of its value this year alone and is now 60,000 to the dollar.
• The crisis threatens to strengthen hardliners and undermine political stability.

Natasha Turak | @NatashaTurak

Published 5 Hours Ago Updated 5 Hours AgoCNBC.com

AFP PHOTO | ATTA KENARE

Iran's currency, the rial, has plummeted to an historic low amid growing economic and political uncertainty, causing a rush to the banks as Iranians desperately try to acquire U.S. dollars with exchanges forced to shut their doors to prevent long and chaotic lines.

If unchecked, the crisis, combined with further deteriorating relations with the U.S., could spell severe instability for the Islamic republic.

The rial has lost one-third of its value this year alone. The currency is now 60,000 to the dollar; when Iranian President Hassan Rouhani took power in 2013 a dollar bought 36,000 rials. The devaluation has been essentially continuous since the country's 1979 Islamic Revolution, when one dollar bought 70 rials.

To stem the mounting panic, Tehran announced this week that it was setting the official exchange rate at 42,000 rials to the dollar, going against the market — and threatening harsh punishments, including detention, for anyone trying to exchange money at a different rate.

This should keep things under control, for now, said Iran researcher Henry Rome of political risk consultancy Eurasia Group.

"The policy change, combined with new restrictions on foreign currency holdings, will likely succeed in arresting the rial's collapse in the immediate term," he said in a research note, adding that the government has sufficient foreign reserves to pull this off. Still, it will continue to hurt Iranian import and export businesses, which have difficulty accessing currency from the government and rely more on black market exchanges.

Iran's woes are not due to a trade imbalance; non-oil exports in 2017 were $47 billion and oil sales hit $55 billion, leaving a currency surplus of $17 billion. The crisis is actually in accessing currency notes, which is estimated at only 5 percent of all foreign currency in Iran, while the rest is available in the form of credits for business.

AFP PHOTO | ATTA KENARE

Corruption, internal fighting and fear of new sanctions are all factors in the rial's demise. And the money made in exports struggles to return to Iran, as international banks are still reluctant to enter the country for fear of brushing up against remaining U.S. sanctions.

Potential collapse of the Iran nuclear deal

The 2015 signing of the Iran nuclear deal, which lifted numerous economic sanctions on Tehran in exchange for restrictions on its nuclear program, has been a lifeline in reviving the country's battered economy. But it has not attracted investment at the rates hoped by the Iranian government, and amid vocal opposition to the deal from President Donald Trump, chances of its survival beyond May are looking slim.

This, says Rome, would be the biggest blow to the economy, re-imposing restrictions and dangerously compounding Iran's current dollar shortage.

"The return of secondary sanctions would most likely put extreme strain on Iran's economy and cause demand for the dollar to spike," he said. "It is unlikely the central government could maintain a rate at 42,000 rials under those circumstances."

It also has further political implications for the country of 80 million, and threatens to undo some of the progress seen since the signing of the Iran deal. Since that time, more "moderates" have been elected to government, buoyed by many Iranians' hopes of greater rapprochement with the West and therefore better economic conditions.

An opportunity for hardliners?

"For the hardliners, (this) is an opportunity to restrict access to the country and by people in the country to the outside world," said Richard Nephew, an adjunct professor at Columbia University who formerly served as the lead Iran sanctions expert at the U.S. State Department.

"This concept of economic resistance is very attractive to them, as they see that openness can damage and undermine their control."

Iran's economy is dominated by the conservative and anti-American Iranian Revolutionary Guard Corps, the branch of Iran's military devoted to protecting its Islamic republic system. Events like this test the tensions between Rouhani, seen as a relative moderate, and the farther-rightwing forces in the country opposed to greater engagement with the West.

"This appeared to be a direct shot across the bow of hardliners, who have been accused of hoarding dollars to undermine Rouhani," Rome said. Still, he doesn't believe these hardliners are likely to undermine Rouhani's efforts to stabilize the currency in the near-term, however long those efforts might hold.

"Combined with this new regulation, public pressure will increase on hardliners not to obviously sabotage Rouhani's new efforts," he said.

Economic discontent led to numerous street protests across Iran at the year's start, with thousands of people arrested. Eurasia predicts a 65 percent probability that the nuclear deal will collapse in Trump's first term, and on top of the current currency fears, risks pushing Iran's economy that much closer to collapse.

[10 YEARS LATER]

Would making the statement “ You brought this on yourselves “ be too extreme ?

[yota691]

Khatib Friday in Tehran calls everyone to support national goods and settle the problem of hard currency

TEHRAN, April 13 (IranMania) - The head of the Islamic Republic of Iran, Ayatollah Mohammad Amami Kashani, said Friday that support for Iranian national goods and contributing to solving the problem of foreign currency is a responsibility of all. Decisions.

"In the face of such economic problems, everyone must maintain their unity to overcome this stage and dismantle the mines planted by the enemy," Ayatollah Imami Kashani said at Friday prayers at Tehran University. 
I recommend to the Iranian people and the executive, legislative and judicial authorities and all those responsible to work to solve the problems through the unity of all in the decision-making and proper management of the country. 
He referred to the directives of His Eminence the Leader of the Islamic Revolution, Ayatollah Khamenei, on the support of Iranian national goods, which helps solve the problem of unemployment and job creation. 
Khatib said Friday that we must make sound decisions to support Iranian national goods and solve the problems of the hard currency market. 
Finished ** 1110 ** 2342

[yota691]

Latest Update: Saturday, July 28, 1439 H - April 14, 2018

Iran prevents foreign currency trading after its currency crumbles

 

Saturday, 28 Rajab 1439 - April 14, 2018

Arabic.Net - Saleh Hamid

On the impact of the collapse of the Iranian currency exchange rate The authorities in Tehran on Saturday, the prohibition of trading in foreign currencies, while a prominent religious authority demanded the execution of a number of brokers or cashiers to prevent the continued collapse of the currency.

"There are orders to ban trading in all foreign currencies outside the banking system, banks will be required to buy small amounts of foreign currency, and cashiers have been barred from buying and selling," said Syed Ahmed Araghaji, a deputy of the Iranian Central Bank for Foreign Exchange.

"Currently, the country's currency balance is very satisfactory and there are no problems in meeting the needs of the country, but the conditions should not lead to capital outflow," Araghji said. "The most important issue in the foreign exchange market is preventing the withdrawal of capital and financing of smuggling operations. Abroad".

"In the wake of the recent decision by the government, any importation was prevented without the approval of the cabinet, and any imports that require the allocation of foreign exchange were banned and purchases from abroad are made through bank transfers only," the central bank's aide said.

The Iranian religious authority, Nasser Makarem Shirazi called for the execution of a number of key elements of currency brokers, and said in remarks Wednesday, "The lack of proactive action, will force us to pay high costs later."

"One of the things that needs to be done is to deal strictly with a number of key elements of currency brokers who are trying in this way to create chaos in the country and must be prosecuted as corrupters in the land and executed to be a lesson to others," he said.

The head of Tehran police announced the arrest of 12 traders on charges of manipulating the foreign exchange market last Tuesday and seizure of their possession.

The Iranian currency witnessed a historic collapse last week, where the exchange rate of the Iranian riyal was 61 thousand riyals against the dollar.

The Iranian government refuses to recognize the internal and economic causes of the collapse and tries to link it to political factors and external influences.

The government is trying to pretend that the rise in the price of hard currency is not linked to non-economic reasons, and foreign political factors and international pressure are responsible for the collapse of Iran's currency.

[yota691]

Tehran bans foreign currency deal after currency collapse

 

11:40

Last updated

The time now is 11:53 AM

1139

Watch

 

 

 

Follow-up / tomorrow Press:

TEHRAN (Reuters) - Authorities in Tehran on Saturday banned foreign currency trading after the exchange rate of the Iranian currency collapsed, while a leading religious authority demanded the execution of a number of brokers or cashiers to prevent further currency collapse.

"There are orders to ban trading in all foreign currencies outside the banking system. Banks will be required to buy small amounts of foreign currency, and cashiers have been barred from buying and selling," Tasnim quoted Ahmed Araghji, a deputy of the Iranian Central Bank for Foreign Exchange Affairs, as saying. 

"At the moment, the country's currency balance is very satisfactory and there are no problems in meeting the needs of the country, but the conditions should not lead to capital outflow," Araghji said. "The most important issue in the foreign exchange market is preventing capital withdrawal and smuggling financing. Abroad". 

The Central Bank of Iran (IRB) disclosed that following the recent decision by the government, the importation process was banned without the approval of the cabinet. It banned any imports that require foreign exchange allocation and that purchases from abroad are made through bank transfers only.

The Iranian religious authority, Nasser Makarem Shirazi called for the execution of a number of key elements of currency brokers, and said in remarks Wednesday, "The lack of proactive action, will force us to pay high costs later." 

He stressed that the work to be done is to deal strictly with a number of key elements of currency brokers who are trying in this way to cause chaos in the country and must be tried as spoilers in the land and executed to be a lesson to others, "as he put it 

The Tehran police chief announced the arrest of 12 traders on charges The manipulation of the foreign exchange market last Tuesday and the seizure of their possession 

The Iranian currency saw a historic collapse last week where the exchange rate of the Iranian riyal 61 thousand riyals against the dollar One 

The Iranian government refused to recognize the internal and economic reasons for this collapse and try to link E by political factors and external influences.

The government tried to pretend that the rise in the price of hard currency was not linked to non-economic reasons, and foreign political factors and international pressure were responsible for the collapse of Iran's currency.

[pokerplayer]

Thanks Yota for bringing all these articles over for this thread.

 

Some Good, Some Bad, all relavent.

 

  pp

[ChuckFinley]

17 hours ago, pokerplayer said:

Thanks Yota for bringing all these articles over for this thread.

 

Some Good, Some Bad, all relavent.

 

  pp

That is what I like about you PP, short and sweet.  

[yota691]

IRAN / IRAN Date: April

 

 

 

Iran to establish a new system of foreign exchange

Iran's First Vice President, Ishaq Jahangiri, said that the government, in cooperation with economic institutions, is continuing to establish a new foreign currency exchange system in the country.

Jahangiri said at the meeting of the economic body that organizes the foreign exchange market on Sunday that the polarization of the banking system of liquidity and foreign currencies available in the society, an important approaches to maintain the national currency and the savings of the people. 

For his part, the Governor of the Central Bank of Iran and the Crown Prince, Ali al-Saif said during the meeting that the project to establish a new system of foreign exchange, the past in various dimensions and that the bank holds meetings with working groups and economic and financial institutions in order to take proposals and strict implementation of government decisions and those emanating from the Economic Regulatory Authority of the foreign exchange market With the aim of regulating the currency market and creating transparency and monetary control.

[yota691]

The beginning of the collapse of the Iranian currency signals the end of the political system in Tehran

- 42 Minutes Ago

The Iranian currency fell against the dollar in less than a year, stable at the edge of 5,000 Tumans, as the dollar rose 400 Tuman to 4985 on 13 February 2018, which coincided with the re-election of President Hassan Rowhani for a second term. 
According to experts and specialists, the economic and political reasons for this decline are: 
• Protests in Iran in late December 2017 due to high prices and unemployment , Which began with socio-economic slogans and raised slogans against the ruling establishment, and the demonstrations and internal political stimuli associated with the reformist-fundamentalist struggle, the emergence of control and transformation of space to object to the system to the confrontation between protesters and the authorities, Lack of security and low confidence in the Iranian market.
• The threat of US President Donald Trump to cancel the nuclear agreement created fears in the Iranian street, which affected the formulation of the Iranian economic scene, and the entry of Iranians to the stage of questioning, as the first manifestations of public concern in the increasing demand for the dollar and withdraw deposits for fear of the collapse of the currency, The bankruptcy of financial institutions that could not meet the applications of depositors. 
Experts and specialists believe that the crisis is linked exclusively to the consequences of the economic sanctions that remain on Iran and the lack of foreign investment flowing into Iran. 
Limiting the causes of economic sanctions alone has shown an incomplete picture of Iran's complex crisis and Iranian economic and political evidence, so that analytical conclusions can not produce clear results.
Because the economy and politics are two sides of a single coin, the crisis must have repercussions beyond mere exchange rates and collapse, and go beyond Iranian financial policies that contributed to the emergence of the crisis. 
The collapse of the exchange rate reflects a clear deterioration in the state of the Iranian economy, because the successive collapse of the exchange rate is reflected heavily on the prices of real estate assets and living standards of Iranians, especially retirees and fixed income. 
The newspaper Arman described what is happening in the Iranian market as an attempt to "coup" against the government through the currency. "If the impact of the currency is not directly on people's lives, the psychological impact can be difficult for society, because the fluctuations of the currency market and gold cause the deterioration of calm Psychological consequences for citizens.
The newspaper accused the "losers in the world of politics and economic groups" working hideously to confront the government through the "economy" (currency market and gold) to become a political weapon against the government. 
Economic and political experts stressed that the increase in the demand to buy the dollar despite the increase in value due to lack of confidence in the Iranian regime, because of its expansionist and hostile policy in the region, which led to the exposure of their countries to international sanctions, in addition to the flight of foreign capital from Iran, The price of commodities and goods has skyrocketed. 
He criticized the Iranian economic analyst Faridoon Khawand, the decision to determine the foreign exchange rate of his country, saying that the central bank will not be able to control much the price of green currency, pointing out that there are several factors that control the foreign exchange market in Iran, including inflation and foreign trade, especially in light of fluctuations World oil markets.
In the same context, the Iranian government tightened its grip to stop the devaluation of its local currency against the dollar, which fell to record levels. The central bank of Iran set a maximum limit for Iranians holding foreign exchange outside banks at 10,000 euros. 
The central bank gave a date for consumers until the end of April to sell any surplus or deposit it in banks, Tasnim News Agency reported. 
The official website of the Central Bank of Iran published new and official exchange rates for the pound sterling at 59330 riyals and the euro at 51709 riyals. 
Iranian Vice President Yitzhak Jahangiri called the crisis "aggressive" against Iran, especially the United States after the nuclear deal, stressing that Tramp is trying to disrupt the economic situation in order to prevent investment in Iran.
Jahangiri pointed to Iran's agreements with other countries to attract foreign investments of more than 30 billion dollars in the form of finance, adding that a large volume of foreign investment is now moving into the country. In such circumstances, such changes in the foreign exchange rate appear to be Is completely abnormal and that there are uneconomic, unjustified and unexpected factors that are influential in this area. In such circumstances, we can not allow a disturbance in the country's economic climate. 
Jahangiri said that the price that was set at the meeting for the price of the dollar, which is 4200 Toman, will be the approved in transactions and does not recognize the government any other price and will be held accountable for dealing at a higher price, as the security and judicial authorities are expensive to address it.

Iran was between the official exchange rate of its currency and its price on the open market a few days ago, and announced that the price of the dollar will be 42 thousand riyals in all markets and all business activities.

The expectations of the Iranian market observers that the economy of Tehran will see a collapse and specifically in the banking sector, in the coming period, considering that the foreign currency crisis is likely to expose the Iranian regime to the scenario of Venezuela's acute crisis, which is experiencing a deepening economic crisis or the bankruptcy of official financial institutions in the country.

The Iranian government's policy of imposing economic sanctions and reducing the price of the Iranian currency, especially the process of withholding Iran from the international exchange process (SWIFT), made its international exchanges very difficult and was therefore the most important financial sanction to be directed to Iran. Anyone who has visited Tehran in recent years has difficulty using electronic payment cards in Iranian hotels and shops to buy goods and goods, forcing tourists to carry large amounts of money in their travel and travel to Iran. While the effects of economic sanctions are clear, the collapse of exchange rates can not be justified solely by the fact that these sanctions are only doing their work, but the policies of Iranian President Hassan Rowhani must also be put in front of their responsibilities.
Neoliberal policies of Hassan Rohani's government have also contributed to this outcome, and the clash between policies of bias for the vulnerable as a political slogan and policies of bias against them as economic practice. 
Therefore, the Iranian president is drawing attention now that he is under great pressure because of his responsibility for the current economic crisis. It is obvious that the wings of the government in Iran are trying to make him pay the price of the economic crisis for the remainder of the political balance in order to prevent the crisis from spreading to the entire regime. 
Given Iran's historical background, it is likely to be re-aligned within the regime on the basis of a formula that can resolve the economic crisis through its influence with actors in Iran's economic equation, which requires relatively little time and quiet because of US President Donald Trump's statements and pressures.
And economic failures will continue to do their work inside Iran for a foreseeable period, which puts pressure on Iran's decision maker in the political and regional files. However, the economic and regional pressures do not seem to lead to an Iranian handover of regional files. The IRB has been holding about $ 70 billion in reserves to keep it from collapsing in the short term, and Iran still has a good deal of paperwork. The ball is still on the pitch and the final result has yet to be announced.

The crisis has had repercussions on the Iranian street. The sharp decline in the value of the Toman necessitated the interference of the security forces, the raids on the exchange market in central Tehran and the arrest of dozens of accused of manipulating the money market. 
The Iranian government resorted to increasing the tax rate for travelers outside the republic. After the travel tax of 70 tomans paid at the time of leaving Iran for the first time, it became 220 tomans, the second passenger paid 320 tomans, the third one reached 440 tomans, and the Iranian toman reached 490 in the currency market. And 420 in banks 
. Observers believe that the only hope for the Iranian economy to overcome this crisis is the continuation of the relative stability of oil prices, but the possibility of continuing social unrest and the intensification of sanctions could easily eliminate the economic benefits of stable oil prices.

Economic Studies Unit

Link Center for Research and Strategic Studies

[yota691]

The Iranian currency fell to its lowest level in four years in the markets of Kurdistan

 

Wednesday, April 18,

 

 

 

Alsumaria News / Baghdad , the Iranian currency fell to its lowest level in four years, in the foreign exchange markets, in the territory of Kurdistan , particularly in the province of Sulaymaniyah , which has close trade ties with the Iranian side.  According to the owners of the banking and traders' offices in the province of Sulaymaniyah, the continuous deterioration in the value of the Iranian riyal caused considerable material losses, pointing out that the losses of some merchants accredited to the "Altoman" Iran in their trade deal exceeded $ 50,000 in two weeks, especially those who export to Iran daily Large quantities of scrap iron, copper, plastic materials consumed and impregnated.     The same is true for traders who import Iranian goods and goods sold in Sulaymaniyah markets in Iraqi dinar at a higher value than the Iranian currency.  According to one of the Kurdish traders, the Iranian currency is declining significantly within Iran, prompting us to refrain from dealing with the currency, which may improve in value if the causes of political tensions and military existing in the region now.  Many banking owners have been forced to freeze their dealings in Iranian currency as their value continues to deteriorate, fueled by economic experts for political reasons in the first place.  Another trader points out that there are a number of reasons for the rapid decline in the value of the Iranian riyal, including the dependence of Iranian traders on foreign currencies in their commercial dealings and the reluctance of foreign investors to invest in Iran because of the US threats toTehran and the potential for war in the region.  Others believe that the continued devaluation of the Iranian Toman will have a negative impact on market conditions in the Kurdistan region also in the near term.  According to economists, the value of the Iranian riyal will continue to deteriorate as a result of regional tensions, in which Iran plays a central role.

[blueskyline]

www.reuters.com/article/iran-currency-euro/update-1-iran-switches-from-dollar-to-euro-for-official-reporting-currency-idUSL8N1RV2FA........

MARKET NEWS

APRIL 18, 2018 / 6:25 AM / UPDATED 4 HOURS AGO

UPDATE 1-Iran switches from dollar to euro for official reporting currency

Reuters Staff

•  
•  

(Adds background)

LONDON, April 18 (Reuters) - Iranian government institutions will start reporting foreign currency amounts in euros rather than U.S. dollars, state media said on Wednesday as part of the country’s effort to reduce its reliance on the American currency.

The decision was made at a cabinet meeting, state broadcaster IRIB said.

Central bank governor Valiollah Seif said last week that Supreme Leader Ayatollah Ali Khamenei had welcomed his suggestion to replace the dollar with the euro in Iran’s foreign trade, as “dollar has no place in our transactions today”.

Tehran has been trying for years to move away from the dollar because of political tensions with Washington, although much of the country’s international trade is still conducted in dollars and ordinary Iranians use them for travel and savings.

U.S. President Donald Trump has threatened to exit a 2015 nuclear deal Iran made with world powers unless it is revised. U.S. sanctions will resume unless Trump issues new “waivers” to suspend them on May 12.

Bank transactions involving the dollar are already difficult for Iran because legal risks make U.S. banks unwilling to do business with Tehran. Foreign firms can be exposed to sanctions if they do Iranian deals in dollars, even if the operations involve non-U.S. branches.

 

As a result, France will start offering euro-denominated credits to Iranian buyers of its goods later this year to keep its trade out of reach of U.S. sanctions, the head of state-owned French investment bank Bpifrance said in February.

The threat of U.S. sanctions has destabilised Iran’s foreign exchange market in recent months. The rial lost close to half its value on the free market between last September and last week, sinking to a record low of about 60,000 against the dollar before authorities set a fixed rate of 42,000 and warned Iranians they would face penalties for using other rates. (Reporting by Bozorgmehr Sharafedin Editing by Andrew Torchia and Matthew Mpoke Bigg)

[Half Crazy Runner]

On 4/12/2018 at 5:09 PM, 10 YEARS LATER said:

Would making the statement “ You brought this on yourselves “ be too extreme ?

 

Exactly! I was thinking of the old idiom - “you make your bed, so you must lie on it”...

[climber7]

39 minutes ago, blueskyline said:

www.reuters.com/article/iran-currency-euro/update-1-iran-switches-from-dollar-to-euro-for-official-reporting-currency-idUSL8N1RV2FA........

MARKET NEWS

APRIL 18, 2018 / 6:25 AM / UPDATED 4 HOURS AGO

UPDATE 1-Iran switches from dollar to euro for official reporting currency

Reuters Staff

•  
•  

(Adds background)

LONDON, April 18 (Reuters) - Iranian government institutions will start reporting foreign currency amounts in euros rather than U.S. dollars, state media said on Wednesday as part of the country’s effort to reduce its reliance on the American currency.

The decision was made at a cabinet meeting, state broadcaster IRIB said.

Central bank governor Valiollah Seif said last week that Supreme Leader Ayatollah Ali Khamenei had welcomed his suggestion to replace the dollar with the euro in Iran’s foreign trade, as “dollar has no place in our transactions today”.

Tehran has been trying for years to move away from the dollar because of political tensions with Washington, although much of the country’s international trade is still conducted in dollars and ordinary Iranians use them for travel and savings.

U.S. President Donald Trump has threatened to exit a 2015 nuclear deal Iran made with world powers unless it is revised. U.S. sanctions will resume unless Trump issues new “waivers” to suspend them on May 12.

Bank transactions involving the dollar are already difficult for Iran because legal risks make U.S. banks unwilling to do business with Tehran. Foreign firms can be exposed to sanctions if they do Iranian deals in dollars, even if the operations involve non-U.S. branches.

 

As a result, France will start offering euro-denominated credits to Iranian buyers of its goods later this year to keep its trade out of reach of U.S. sanctions, the head of state-owned French investment bank Bpifrance said in February.

The threat of U.S. sanctions has destabilised Iran’s foreign exchange market in recent months. The rial lost close to half its value on the free market between last September and last week, sinking to a record low of about 60,000 against the dollar before authorities set a fixed rate of 42,000 and warned Iranians they would face penalties for using other rates. (Reporting by Bozorgmehr Sharafedin Editing by Andrew Torchia and Matthew Mpoke Bigg)

 

 

Interesting!  Thanks Blue....

 

Do you--or anyone else--know if this affects our exchange rate in any way?   Thanks 

[gregp]

Forex is holding steady. 

[3n1]

welp with any luck iran was cut off from laundering money thru the cbi for usd so there going with the euro now ... shear speculation , cheers dv 

[gregp]

19 minutes ago, 3n1 said:

welp with any luck iran was cut off from laundering money thru the cbi for usd so there going with the euro now ... shear speculation , cheers dv 

 

Good point.  

[Freedomwish]

On 4/14/2018 at 11:05 AM, pokerplayer said:

Thanks Yota for bringing all these articles over for this thread.

 

Some Good, Some Bad, all relavent.

 

  pp

 Looks like a trip is a coming to your way PP shortly - who knows, I'll be bringing a bottle..

[10 YEARS LATER]

1 hour ago, Half Crazy Runner said:

 

Exactly! I was thinking of the old idiom - “you make your bed, so you must lie on it”...

 

That works  They just can’t get out of their own way.

[markb57]

yep PP. we might be heading your way soon....hopefully!

[Half Crazy Runner]

56 minutes ago, Freedomwish said:

 Looks like a trip is a coming to your way PP shortly - who knows, I'll be bringing a bottle..

 

21 minutes ago, markb57 said:

yep PP. we might be heading your way soon....hopefully!

 

Is pokerplayer having a party...? 

[ChuckFinley]

3 hours ago, 3n1 said:

welp with any luck iran was cut off from laundering money thru the cbi for usd so there going with the euro now ... shear speculation , cheers dv 

Interesting view point there 3n1. 

[Butifldrm]

• economic

Economist reveals the reasons for Iran's use of the euro instead of the dollar

09:16 - 19/04/2018

0

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Information / Baghdad ..

 Economic expert Daoud Abdul Zayer revealed on Thursday the reasons for Iran's shift in foreign transactions from the dollar to the euro, stressing that the latter currency is the main currency today in international transactions and the highest value of the dollar.

"Iran has used the main currency in international transactions, the euro rather than the dollar, where it can achieve significant economic gains because of that transformation," Abdul Zayer said in a statement. "Iran has succeeded in avoiding the impact of sanctions imposed by America , As its use of the euro will strengthen its economic position and away from the sanctions imposed on them.

He added that "Iraq's economy will not be affected by this transformation, despite the great trade exchange between Baghdad and Tehran, and on the contrary, where will increase trade between the two countries, especially that Iran will be able to open more in the new currency and eliminate economic sanctions imposed on them."

Iran announced yesterday its shift in foreign trade from dealing in the US dollar to the euro, which could be seen as a blow to the dollar and to the US economy after the sanctions imposed by Washington on Tehran after Iran's nuclear program. Ending / 25 n

http://www.almaalomah.com/2018/04/19/302141/

[Hotcurl]

22 hours ago, 3n1 said:

welp with any luck iran was cut off from laundering money thru the cbi for usd so there going with the euro now ... shear speculation , cheers dv 

 

IMHO - Pretty much nailed it, on this one, 3n1. I'm thinking the volume at the CBI auctions will drop dramatically with in place.

Another big step closer to the RV and reducing the corruption .

 

Semper Fi

RV there yet ?