Iran currency takes a dive - surprised?

[fnbplanet]

Historic Rates

IRR (Iranian Rial)

Most of you know that I look at a bigger picture of the Middle East than others, so I just brought this over as an "FYI". The UN released their operational rates update today, and I pasted what has happened to Iran's Rial. In thirty days, their currency has plunged 11.2% ! Thirty days! 13% in the last sixty days. This is the reason that the auctions balooned up to over $300 million a while back, and also why anyone in Iran (population:73 million people) who had money was desperate to buy USD through the black market, as a safe haven for whatever wealth they had left. Shabibbi shut it down, but I'm sure that a lot of the USD in Iraq's circulation (estimated to be around 40% of the cash in the street) disappeared towards Iran (and Syria - in the same boat). I'm not over there, but I am guessing that two things are happening: First, Iraqis are now having to use more of their own dinar (remember, it's mostly a cash society) and complaining loudly about it, and secondly, Iranians are using any Iraqi dinars that they have, because the money-changers won't take their Rials - thus allowing the CBI to suck more dinars in. This, IMO, adds more pressure to RV and become a regional (and reserve) currency. Added bonus: The less dinar that terrorists have post RV, the better.

Used in the following countries: Iran

Operational Rate Effective Date

12,250.0 01 Feb 2012

11,012.0 31 Dec 2011

10,844.0 01 Dec 2011

10,681.0 01 Nov 2011

10,736.0 01 Oct 2011

10,570.0 01 Sep 2011

10,546.0 01 Aug 2011

10,874.0 30 Jun 2011

11,702.0 15 Jun 2011

10,567.0 01 Jun 2011

10,404.0 01 May 2011

10,375.0 01 Apr 2011

10,290.0 01 Mar 2011

[Stryker365]

Great analogy fnbplanet, maybe part of the plan!

[Lanceman_1]

I agree and hope it is part of the plan. Get people to trade in Dinars before they are useless.

[Darin]

I completely agree with your analogy. I would also expect the same issues with Syria..

A lot of hard cash outside the country should have had the chance to be sucked in. Great timing if you ask me, because now the CBI can act before the surrounding countries rebound and help be the reason for further expansion.

But if they're still sucking in foreign held IQD at a high rate, the CBI may not be so quick to act.

[fnbplanet]

I saw auctions peaked for the month today. I'm sure some of those USDs are leaking out, but not nearly as much. A one to one RV in the next five weeks would go a long way to de-dollarizing Iraq.

[Darin]

I saw auctions peaked for the month today. I'm sure some of those USDs are leaking out, but not nearly as much. A one to one RV in the next five weeks would go a long way to de-dollarizing Iraq.

I bet a smart individual may sell the USD on the black market and make some hefty profits. Sadly, it is driving down the demand for IQD which plumets the value.

See, since USD is in demand, foreigners may be willing to offer less than market value of IQD to acquire the USD. This effects the value of IQD and drives it down.

See the concern the CBI would have?

[2fast4u2c]

How many Rials have you purchased?

[TLHUBER]

Heck, maybe we bought into the wrong currency.

[Darin]

Heck, maybe we bought into the wrong currency.

Its dropping in value. If you had rials, you'd be losing $

[carlos in san diego]

Problem is, as I see it, Gents is that any benefit the Iranian may seem to think they will gain by buying US Dollars may be shortlived because of the constant information we have been getting about the eventual collape of the US Dollar. Then what are they going to do when that happens?

They would have been better off holding Iraqi Dinar!

I guess their motivation were acts of sheer desperation, maybe that just don't see what's been happening with our economy.

Carlos

[Papster]

Problem is, as I see it, Gents is that any benefit the Iranian may seem to think they will gain by buying US Dollars may be shortlived because of the constant information we have been getting about the eventual collape of the US Dollar. Then what are they going to do when that happens?

They would have been better off holding Iraqi Dinar!

I guess their motivation were acts of sheer desperation, maybe that just don't see what's been happening with our economy.

Carlos

Carlos........the real question is what are we going to do about it.......i could care less about iranians.................but what if it does?.................what will we do?...................GO DINAR

[carlos in san diego]

Papster:

I read a report from the US Treasury on another dinar forum that advised investors and the average citizen to divest themselves of dollar holdings because the US dollar was going to be devalued. The article said to move into investments in the developing world and prescious metals. This was probably back in 2008.

Made sense to me at the time, it was not a new concept, first alarm came in 2007 from what remember, so, personally, I took their advise.

What we are going to do collectively as a nation? Good question! I don't know what our government is doing to prevent it. We can tell by the continued printing of more money that they are obviously not following the right course of action, and maybe because the damage to the economy is so severe that all they can expect to do is delay the innevitable for a little while longer.

It may be a foregone conclution that the problem and the solution maybe out of the hands of government officials, even if the understood the magnitude of the problem. My guess is that even though they claim they can resolve the issue to lend themselves political credibility among the voting public just to get into office, it is the world elite that are in control and they will never surrender that control to someone elected by the people. Even though our Presidencials elections are completely rigged because no one will come to be the POTUS without being annointed by the Rothchilds.

Personally, I don't hold out much hope for the US. We can expect to go the way of Greece very soon. We are bankrupt, and the elite bill collectors will be knowking on the door. The American people will be made to submit to severe austerity measures that will put most in the poor house.

Personally I don't see how anyone can justify to me that the foreign debt that we have was actually brought on by us, but rather it was brought on by agents of the elite (gov't officials) who were working to do just that, put our country into of a debt that we cannot dig ourselves out of so that we have to accept the terms of the bankrupcy that the elite impose.

Personally, I have found an exit from the madeness...a back door so to speak. I intend to use it when all else fails.

Carlos

[zigmeister]

Well...I would not close the door on the US.....yet.

[carlos in san diego]

Zigmaister:

Life will continue here, quality of life will never be the same again, IMHO. The fact is we have not chosen people to lead our country that were qualified to do so. Most are elected because they are "liked" by the majority of the people. Their loyalty to the US constitution and to the American people are never scrutinized during the electoral process.

Just like when Woodrow Wilson sold out our country in 1913 for what would seem like a paultry sum when he allowed himself to be talked into instituting the Federal Reserve by the elite of his day, a decision he later claimed to regret, so we still have elected officials doing the business of the banker elite. This needs to end.

We have to clear the pigs out of the creek so the stream will clear up! All of the self serving pigs!

This country has much to offer the world, sadly, whatever the future hold for us, we will come out of this some day to the light at the end of the tunnel, but I don't think we will not recognise this country.

Carlos