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screwball

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Everything posted by screwball

  1. Yes and you don’t read inflation is high because Iran has devalued their currency....
  2. I think Iran is clearly trying influence Iraq as trump has warned the world about their influence...the us goverment cannot stop cross border trade and deals as long as they don’t deal in usd....remember transaction cannot start and end in usd!
  3. Such wisdom...good things comeing to all those that have invested
  4. Following last year’s depreciation of the rial and in a bid to ease the financial burden on Iranian households, the government initiated a policy of massive subsidized foreign currency grants to import essential foods. As as I said this says exactly who is controlling the exchange rate...
  5. Subsidized foreign exchange major cause of econ chaos June 28, 2019 A Tehran economist says Iran’s economic turmoil is heavily the result of grossly distorted policies on subsidized foreign exchange. Writing in the economic daily Donya-e Eqtesad (Economic World), Hamid Azar-mand says the use of subsidized foreign exchange to import food—the commodity for which more than half of subsidized foreign exchange is used—meant that foreign food was imported at prices below the local cost of production, which both drove farmers’ revenues into the ground and chewed up foreign exchange that could have been used much more usefully on other goods. Following last year’s depreciation of the rial and in a bid to ease the financial burden on Iranian households, the government initiated a policy of massive subsidized foreign currency grants to import essential foods. The dollars used for this purpose are sold to importers for 42,000 rials while on the open market the dollar now sells for about 130,000 rials. Azarmand said this policy, unlike what the government had expected, failed to lower household expenses and also plunged the country deeper into recession—a double whammy of harm. “Data provided by the Islamic Republic of Iran Customs Administration show that last year, imports of maize, rice, soybeans, soybean oilcake and raw vegetable oils increased, in terms of weight, by 23%, 24%, 17%, 13% and 23% respectively compared with the year before”—all huge jumps that didn’t reflect consumption requirements. “The country became overwhelmed with products whose importers received subsidized foreign currency from the government, thanks to the fat profit margins involved in their imports,” he said. “The rise in imports of essential goods is, in fact, synonymous with a decline in domestic production. The allocation of subsidized foreign currency with a rate much lower than that of the market boosted imports rather than local production. That is, at least in part, to blame for last year’s recession,” he said. Azarmand stressed that constant changes in foreign exchange market rules and regulations as well as the list of banned exports left exporters and producers confused. “Under the circumstances, exports at rates higher than those in the domestic market could have helped production and prolonged the survival of domestic manufacturers. They were deprived of this opportunity, thanks to export bans and restrictions,” he said. It should also be noted that the great surge in food imports came when the government was denouncing the US banking restrictions, saying they blocked Iran’s access to foreign banks and prevented Iran from importing food and pharmaceuticals. But when food imports were rising by more than a fifth, Iranian importers obviously didn’t have any problem with US banking restrictions.
  6. Dadfar said the cars’ prices are to be adjusted in accordance with changes in the foreign exchange rate a
  7. Gov’t caves in; gives out licenses to imported cars July 19, 2019 A two-year tussle between Iranian auto importers and government officials is coming to a close, with 7,500 imported vehicles finally receiving licenses to hit the roads. Many in the government want to ban imported cars, especially luxury vehicles. They got such a ban put in place two years ago. But 7,500 cars ordered before the ban arrived at Iranian customs after the ban was announced. The police refused to give them licenses. The importers, mostly wealthy, raised a stink. The secretary of the Iran Auto Importers Association (IAIA), Mehdi Dadfar, has announced that the cars that have gathered dust for two years will all receive licenses now, IAIA’s website reported. “With the help of government agencies, license plates are to be issued for these vehicles,” he said. In the past two years, auto imports were banned, reinstated and banned again while a scandal unfolded in which government officials were accused of facilitating the illicit import of luxury vehicles. Despite the ban, illegal car imports continued for months. Following a public outcry, the Majlis launched an inquiry that uncovered much illicit activity. Dadfar said the cars’ prices are to be adjusted in accordance with changes in the foreign exchange rate and “buyers need to settle the difference between the current rate and what they paid two years ago.” In the summer of 2017, the dollar was selling for 38,000 rials. Now it is around 130,000 rials. So buyers now will have to pay 3.4 times as much for those cars.
  8. Majlis researchers say don’t scrap US$ July 19, 2019 Iranian politicians of all political stripes have appeared eager for a decade to scrap the dollar, with most preferring to rely on the euro, the yen and the yuan for international transactions. But the Majlis Research Center (MRC) has come forward now to say that is a bad idea that might further hurt the Iranian economy. The report said such an action would actually serve to make US sanctions more punishing for Iran rather than less. In an analytical report on the costs and benefits of draft legislation outlawing the US dollar, the MRC said that, while the dollar holds only a small share in Iran’s foreign exchange market, it is still the dominant currency globally and a credible unit for converting other currencies. The report said that outlawing the dollar would “certainly be harmful and create major problems for the forex market.” The research office said the market volatility caused by dumping the dollar would extend to other markets, such as gold, housing and autos, adding to the economic turmoil that afflicts Iran. Banning the buck is uncalled for because it also would deprive the country of some trade opportunities “by imposing internal limits on foreign trade and adding to the existing overseas hurdles that local businesses are grappling with.” The legislative staff experts said, “Dumping the dollar would expose the forex market to a variety of problems given the broad functions” of the global reserve currency. It would be in line with the US sanctions [and not against it].” The bill is so far backed by more than 50 deputies, or more than one-sixth of the Majlis membership. It would outlaw “all transactions, both by the private sector and government, using the [US] dollar.” It also says that after the law comes into force “the US dollar will be considered contraband,” which suggests that mere possession of a dollar bill could put the possessor in jail. The MRC said Iran’s foreign trade is now dominated by the Chinese yuan, euro and the UAE dirham. Since June of last year, sales of foreign exchange on NIMA, the official exchange were importers are told to buy their foreign exchange, shows the dirham accounted for 28.11 percent of the currency sold followed by the yuan at 26.32 percent and the euro at 26.27 percent. The US dollar accounted for 10.15 percent of the traded currencies—though that is probably far greater than many in Iran would expect given the regime’s furious campaign against the dollar—and the fact that US law does not allow Iran to deal in the dollar. For example, the Trade Ministry in March 2018 banned all import orders based on the US currency to encourage non-dollar trade. The MRC report doesn’t endorse dollar trade, but argues that future measures to promote non-dollar trade should be pursued by means other than a crude ban. The report lauds the part of the bill that obliges the Foreign Ministry to use “economic diplomacy” to promote non-dollar transactions across the globe.
  9. Yes great news let’s see if they revalue and remove zeros as well planned for 2020 but we could see it’s little earlier
  10. Yes....this is great news for us invested and who have diversified..
  11. http://iran-times.com/cabinet-votes-to-whack-four-zeros-off-former-rial/ Cabinet votes to whack four zeros off former rial Central Bank Governor Mahmud Bahmani said the decision was made by the cabinet Sunday. He did not announce the new name of the currency, but said it would be published “soon” on the bank’s website. Bahmani said it would take “at least three years” before the currency shift would take place. Back on April 20, Bahmani said it would take at least two years before Iran was ready to knock any zeros off its national currency. Ten days prior to that, Bahmani said the shift would take “one to two years.” Bahmani gave no explanation for the constantly changing timetable. He has, however, stuck with the intention to drop four zeros from the rial, converting 10,000 rials into one rial. He first announced the four-zero drop in April—changing from the three-zero drop that he announced in September 2009 after what he described as a long study by the Central Bank. The shifting of implementation deadlines and the number of zeros to be dropped telegraphs considerable confusion within the Central Bank on what is really a rather minor policy issue with no impact on monetary policy. It begs the question of whether there is equal confusion on more important matters that could impact the economic health of the state. Back in April, Bahmani said the shift from dropping three zeros to dropping four would give the rial parity with the US dollar. Right now, $1 equals about 10,500 rials. By shifting the decimal point four digits to the left, one dollar will cost 1.05 rials. Bahmani failed to say why Iran would want the rial to have parity with a currency the Islamic Republic says is dying and is rapidly being rejected by the rest of the world. Three years ago, Ahmadi-nejad ordered all government agencies to calculate foreign exchange requirements in terms of the euro. But Ahmadi-nejad’s own budget continues to use dollar conversions and only a handful of government agencies state foreign exchange in terms of the euro. Ahmadi-nejad started a vocal campaign against the dollar, calling it a weak currency. Perhaps not coincidentally, that was just after the US Treasury started its campaign to limit Iran’s ability to conduct transactions in the dollar. The government has been talking about changing the national currency to get rid of the voluminous zeros ever since 2007 without ever actually doing anything about it. The problem is that one rial will buy nothing. One rial is currently worth a tad more than 1/100th of a US cent. It takes 105 rials to make a single US penny. The rial has dropped drastically since the Islamic revolution, from 70 to the dollar in 1979, to around 10,500 today. Back in April, Bahmani said the name of the new currency would not change. He did not say Sunday why he had now changed his mind. Bahmani said, “Some people think removing the zeros will weaken the national currency … but it will instead cut inflation. Removing four zeros will also facilitate trade.” But lopping off zeros is purely cosmetic and has nothing at all to do with inflation or the value of the currency. The main benefit of such a change is convenience. The public is no longer dealing with immense figures—millions, billions and trillions. A $100,000 house in Tehran is worth 1 billion rials. If the rial indeed is configured to be close to a dollar, Iran will likely resurrect the dinar. The rial is officially divided into 100 dinars, but the dinar is now a relic recalled only by the very aged. The dinar effectively died with the gross inflation of World War II. The rial was introduced in 1798 by the new Qajar Dynasty. In 1825, the Qajars changed the name to gheran. In 1932, the Pahlavi Dynasty switched from the gheran back to the rial, with the rial worth about 10 US cents of the day and divided into 100 dinars. The Pahlavi rial slipped in value from about 10 to the dollar in 1932 to 70 to the dollar by the late 1950s. It then remained very stable—one of the world’s most stable currencies for two decades—until the 1979 revolution when it went into a sharp plunge. The term rial (in various spellings) is currently used for the currencies of Brazil, Cambodia, Saudi Arabia, Yemen, Oman and Qatar. Many countries shift the name of their currency when they lop off zeros and present the new currency as the end of inflation. Inflation, however, results from government policies, not the name of a currency. Brazil, for example, used one new currency after another in the 1980s before creating the “real” in 1994 and simultaneously shifting its financial policies so as to end rampaging inflation. Other terms that have been used for Iranian currencies over the centuries include the shahi, abbasi, naderi, dozari and toman. Most of those terms have monarchial connotations. Toman is in common usage, however, to mean 10 rials. It is the normal street term instead of rial. However, one toman is worth but 1/10th of a US cent.
  12. Yes plenty of links in Iranian rial thread it was one of many delete zero articles posted...I will check my personal files and see if I can find one
  13. Yep and there is articles saying they will delete zeros from rate...beIieve what you will. Thanks for reposting
  14. This one is cracker... Central Bank Governor Mahmud Bahmani said the decision was made by the cabinet Sunday. He did not announce the new name of the currency, but said it would be published “soon” on the bank’s website. Back in April, Bahmani said the shift from dropping three zeros to dropping four would give the rial parity with the US dollar. Right now, $1 equals about 10,500 rials. By shifting the decimal point four digits to the left, one dollar will cost 1.05 rials. If the rial indeed is configured to be close to a dollar, Iran will likely resurrect the dinar. The rial is officially divided into 100 dinars, but the dinar is now a relic recalled only by the very aged. The dinar effectively died with the gross inflation of World War
  15. Old but interesting...explains why their is confusion, well not on our part anyways! No explanation was given for the long delay or for the shift from lopping off three zeros to four. The constantly shifting policies make the regime look disordered and inept, unable to make decisions or to stick with them once they are made. On Sunday, Central Bank Governor Mahmud Bahmani said Iran plans to slash four zeros from its national currency in “one to two years,” seeking parity with the US dollar. But five days earlier, Bahmani said four zeros would be sliced off under a plan to be presented to the cabinet “within the next six months.” Now six months has become 12 to 24 months. And three days before Bahmani said four zeros would go, Finance Minister Shams-eddin Hossaini said three zeros would be lopped off. And he said that would happen during the current Persian year. In September 2009, Bah-mani announced that after long study the Central Bank had decided to recommend that three zeros be removed from the rial. In January 2010, President Ahmadi-nejad announced his approval of the three-zero reduction. Now Bahmani has suddenly added a zero. While he gave no explanation for the change, he hinted that he was seeking parity with the dollar. “The new rial … will be equal in value to one (US) dollar,” the state news agency quoted Bahmani as saying, adding that it would take “one to two years” to be implemented.
  16. So why does Iraq have a bill to delete three zeros? Suggest you do your research
  17. Anywhere we can cash in we go! Have cash will travel...
  18. And everything else...Dubai is looking good for starters
  19. Exactly...until they do it we won’t know
  20. https://rasanah-iiis.org/english/multimedia/infographics/why-did-iran-remove-four-zeros-from-its-national-currency/
  21. Iran, Russia to boost banking coop. TEHRAN, Aug. 15 (MNA) –Russian Ambassador to Iran Levan Dzhagaryan said banking cooperation between Iran and Russia will increase in near future. He made the remarks at “Khazar National Day” conference in Babolsar, Iran on Thursday. Russian ambassador said, “Increasing banking transactions will result in increasing of trade between the two countries.” Dzhagaryan added, “I hope that increasing in banking transactions will pave the way for further elimination of dollar from the two countries’ trade.” He said that the level of cooperation between Iran and Russia is high due to political will of the two sides. Russian diplomat added, " A Russian economic delegation will visit Iran's northern provinces in near future in order to increase economic and trade cooperation between two countries."
  22. Business And Markets July 30, 2019 19:05 CBI’s Vice-Governor, Australia Envoy Confer ..... Adeputy governor of the Central Bank of Iran met the Australian ambassador to Iran, Ian Biggs, on Tuesday to discuss monetary and banking issues. The two sides agreed to expand banking cooperation. Ajbar Komijani described good banking and monetary relations as the first step toward expanding commercial ties, noting that there are enough economic and banking capacities between Iran and Australia that can be tapped into to improve two-way trade. “Given the good capacities, we can hope to expand relations in all fields,” he was quoted as saying by the CBI website.
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