THIEF OF BAGDAD

Iran c.bank signals no big rial appreciation after nuclear deal DUBAI, JULY 15 Iran's central bank governor indicated on Wednesday that Tehran was keen to dampen any rise in the rial due to optimism over the lifting of economic sanctions after its nuclear deal with world powers. The rial, which suffered under the sanctions, has edged up to around 32,450 against the U.S. dollar in the free market after Tuesday's nuclear agreement from 32,550 at the end of last week, according to Iranian foreign exchange websites. Growing optimism about the post-deal economy could prompt Iranians to change back into rials billions of dollars that they converted into hard currencies and gold, putting upward pressure on the currency's value and eventually hurting Iranian exports. "We saw a slight drop in the dollar price after the nuclear deal, but this won't continue in the long run," central bank governor Valiollah Seif told reporters after a cabinet meeting, according to the Iranian Labour News Agency ILNA. Iran currently operates two exchange rates, the free market rate and an official rate used for some state transactions, which is now at 29,499. In recent months, the central bank has been raising the official rate gradually to shrink the gap between the two. It has said it wants to eliminate the difference entirely, to make the economy more efficient by putting private firms on an equal footing with state institutions. Seif said on Wednesday that the central bank would need five to six months after the nuclear deal was implemented to unify the exchange rate. "Preparations have already started," he said. The nuclear agreement will be implemented once the International Atomic Energy Agency has verified that Iran is keeping to its side of the bargain. That may happen around the end of this year, giving Iran access to over $100 billion of assets frozen abroad by the sanctions, according to U.S. officials. "Implementation of a single forex rate is easier for the government when it has enough foreign exchange reserves, so that a market shockwave will not stop the policy," government spokesman Mohammad Baqer Nobakht said on Wednesday. (Reporting by Bozorgmehr Sharafedin Nouri; Writing by Andrew Torchia; Editing by Tom Heneghan) http://www.reuters.com/article/2015/07/15/iran-currency-idUSL5N0ZV3WO20150715

Another plunge in Iran’s Rial Thursday, 17 September 2015 10:57 Written by Sanabargh Zahedi By Dr. Sanabargh Zahedi In Tehran on Monday, the value of Iran’s official currency, the Rial, took yet another dive, standing at 35000 rials for each U.S. dollar. Two years ago, it stood at 29000 rials to the dollar. The fall in the currency value is an important indicator of the fragile state of Iran’s economy and illustrates the Rouhani government inability to improve the country’s economic conditions. The state-run Fars news agency reported that this is the highest value for the dollar in the past two years. The nuclear deal between Iran’s regime and the six world powers on July 14 resulted in a reduction in the price of foreign currency and gold to some extent, but only a few days later the Rial again lost its value against foreign currencies. There were expectations that following the nuclear deal the economy would improve but reports indicate that severe stagnation still hurts the economy. Mohammad Bagher Nobakht, head of the regime’s Management and Planning Organization, recently stated that Iran’s budget deficit has reached 50% for this year. The director of exports of Iran’s Central Bank has stated that “increase in real demand, increase in delayed payments, plunge in oil prices, increase of trade in unofficial markets, and waning of market excitements” are among the causes for an increase in the value of foreign currencies. The price of Iranian oil was estimated at $70 a barrel when Hassan Rouhani’s administration set this year’s budget; but oil prices now stand at $40 a barrel. Nevertheless, analysts of the Iranian economy believe that even without a drop in oil prices, it was unimaginable for Iran’s economy to rebound from bankruptcy. The expenses of the war in Syria and Tehran’s backing of the Houthis in Yemen and the militias affiliated with the Quds Force in Iraq, as well as the billions spent each year on the nuclear weapons projects are burdening the Iranian economy and depriving the country of internal investments. Most importantly, the entirety of Iran’s economy is suffering from institutionalized corruption and a monopoly by organs affiliated to the regime’s Supreme Leader Ali Khamenei, in particular the Islamic Revolutionary Guards Corps (IRGC). Dr. Sanabargh Zahedi, Chairman of the Judicial Committee of the National Council of Resistance of Iran (NCRI) http://www.ncr-iran.org/en/blog/19136-another-plunge-in-iran-s-rial

09/20/15 Iran's surprising currency drop casts suspicion on government By Hamid Mafi, Radio Zamaneh The Iranian currency market is in shock with the value of the national currency once again falling against foreign currencies and the dollar trading 150 toumans higher, despite expectations that the prospect of the nuclear agreement would strengthen the touman. Currency Market (cartoon by Javad Takjou, Iranian daily Etemaad) The fall in the value of the national currency is significant because in the past two years the government has consistently tied the economic recovery to the nuclear negotiations and reaching a deal. Now, two months after the announcement of a deal with a flurry of foreign trade missions to Iran and the easing of certain financial and economic restrictions, the public expected a rise in the value of the national currency and a fall in the price of goods and services. While the government says the increase in the price of the dollar is temporary and insists that it will once again resume its downward climb, government critics accuse it of "manipulating the dollar to remedy their budget shortfall". While economic minister Ali Tayyebnia has been predicting that the government will have no budget shortfall, reports from the Rohani administration and its economic advisors speak of budget restrictions. According to Mohammad Ali Najafi, economic adviser to the president and secretary of the cabinet coordination committee, this could be one of the worst years in terms of budget shortfall. He has been quoted as saying that due to the fall in oil prices, the government may face a deficit of 55 trillion toumans. A Profit-driven Government In addition to the falling oil prices, Iran's non-petroleum exports have also declined in the past five months. According to Iranian Customs, the volume and value of non-oil and semi-oil exports in the first five months of the year have decreased by seven and 16 percent respectively. Meanwhile, it was predicted that the government would inject into the national economy over $100 billion in assets released from foreign banks following the nuclear deal; however, the government is now saying the assets are closer to $30 billion. Therefore, the general expectations about the market have not been fulfilled. In this situation, one of the easiest ways to remedy the budget shortfall is to derive some revenue from the difference between the state price and the market price of the dollar. This strategy has been noted by the head of the Tehran Chamber of Commerce, Massoud Khansari, who was quoted as saying: "The government is manipulating the price of the dollar; the market is no longer determining the price of the dollar." He confirmed that the government's manipulations are aimed at compensating for its budget deficit. On top of the government's manipulations, continued economic stagnation and the lack of activity in other sectors is driving up demand for buying the dollar as a capital good. In contrast, experts were predicting a fall in the price of the dollar and movement in the real estate and auto markets, but a persistent recession and concerns about the budget shortfall and inflation that's back on the rise are driving the public to invest its money in foreign currencies. Promises from government officials that next year's budget will have a single exchange rate for the dollar instead of the current two rates indicate that the rate of exchange for the dollar is not likely to go down. According to this theory, the wandering assets in the market will find their way to the currency market and stimulate demand for the dollar. Although the rising foreign exchange rate may accomplish the government's goal of fixing its budget shortfall, the rising dollar will increase the price of imports and manufactured goods, which leaves the Iranian people paying more for goods and services and suffering an overall decline in their purchasing power. ... Payvand News - 09/20/15 ... -- http://www.payvand.com/news/15/sep/1121.html

Where we can buy small denominations? I'm scared to buy large notes how about if they cancel the 50k 100k 500k and 1 million notes?