Iranian Rial

[jaman]

not sure we can give the name here...rules

[screwball]

3 minutes ago, jaman said:

not sure we can give the name here...rules

You can pm....

[markb57]

if and when it pops, you would still have to go to the ME to cash out as of right now

[jaman]

7 minutes ago, screwball said:

Ebay! 

sent you info on your page

 

[jaman]

1 minute ago, markb57 said:

if and when it pops, you would still have to go to the ME to cash out as of right now

why would that Be?

 

[markb57]

read back several pages and you'll see. the US still has sanctions against Iran

[screwball]

TEHRAN (FNA)- Deputy director of International Affairs for Marketing and Crude Oil Operation in the National Iranian Oil Co said that Iran gives the priority to the European single currency euro as payment means of its oil export contracts.

“Our top priority is to receive cash and oil demands in euro,” Safar-Ali Karamati told Shana in the wake of removal of sanctions on oil exports and lifting the ban on banking transactions.

Asked whether Iran still prefers its oil payments to be in euros under the new contracts with foreign companies, he replied, “It depends on the mutual agreement. But NIOC would rather euro.”

He said NIOC has several options for receiving payments in reliable foreign currencies and added, “Because of their single monetary unit, European customers have no problem to pay for crude oil deals in euro.”

 

[screwball]

TEHRAN (FNA)- Iran wants post-sanctions’ oil contracts denominated in dollars and have buyers pay in euros.

Tehran is also keen to receive money owed to it since the pre-sanctions days in the European currency, Reuters reported.

The country’s crude deliveries are to be restored soon, with companies such as the French giant Total, Spanish refiner Cepsa and Litasco and the trading arm of Russia's Lukoil already holding contracts. Reuters source at state-owned National Iranian Oil Co (NIOC) told the agency that Tehran wants to receive payment in euros.

"In our invoices we mention a clause that buyers of our oil will have to pay in euros, considering the exchange rate versus the dollar around the time of delivery," the source said.

Tehran also wants to receive billions of dollars worth of assets frozen under the sanctions in euros, said another source. Iran has tens of billions of dollar in assets which would be unfrozen under the sanctions relief.

Iranian disdain for the American currency is nothing new. In 2007, it unsuccessfully campaigned at OPEC to switch from the dollar. The role it plays in the oil trade is one of the key reasons the dollar enjoys the status of the world’s leading reserve currency.

Iran is not alone in wanting to distance itself from the dollar. Russia has been working towards the same goal, trying to eliminate the US currency from domestic trade and signing deals with its key foreign economic partners to use national currencies in bilateral trade.

The sanctions against Iranian oil and its banking industry were imposed by the US and some of its allies, most importantly the EU, over allegations that Tehran was secretly trying to build a nuclear weapon. Iran denied the allegations and insisted its nuclear activities were for civilian purposes.

Last year, Iran and six leading world powers reached a deal, under which Iran's claims about the peaceful nature of its nuclear program were all vindicated. In exchange US and EU economic sanctions and nuclear-related sanctions imposed by the UN will be lifted.

 

 

[screwball]

TEHRAN (FNA)- Iran has decided to conduct its oil trade in euros, not US dollars, reports suggested.

To explain why, Economic analyst Shabbir Razvi told Radio Sputnik that Tehran is apparently playing a "delicate" chess game with Washington.

"Iran is trying to make its relationship with the US and the world more amiable than it has been in recent past. However, at the same time Iran does not want the US to become any stronger. This is really a chess game the Iranians are playing vis-à-vis the US," Director of the International Dialogue Foundation in London noted.

Iran's oil contracts in euros already include recently signed deals with French Total, Russia's Lukoil and Spanish Cepsa, an unnamed source in state-owned National Iranian Oil Company told Reuters on Friday.

The underlying logic behind Iran's decision is simple: if Tehran moves away from the petrodollar, the US will have less control over the oil market. At the moment, the US dollar is the currency for any multinational commodity transactions, particularly for oil trade.

"It is literally the only reason that the dollar and the US economy are stable," the analyst observed.

However, in the last five years global transactions in dollars have significantly decreased. "It used to be 90 percent, now it is 60 percent," Razvi detailed. As a result, "the glamour and the luster" of the dollar, as the analyst put it, is on the decline.

Razvi also pointed out that Western financial elites "need the petrodollar system" and they are willing to use measures of last resort, even military campaigns, to protect the status quo. Tehran is well aware of the implications of its decision, so it is playing a "delicate chess game" with the US.

"Saddam Hussein began selling oil in euros and we know what happened to Iraq after 2001."

Similar fate awaited Libya's late leader Muammar Gaddafi, who was killed after a NATO-led intervention threw the country into chaos. Gaddafi was a staunch advocate of introducing a new currency, the gold dinar, to rival the US dollar and the euro. "The US and its allies bombed [Libya] into oblivion and changed the regime there," the analyst noted. 

Nevertheless, Razvi emphasized that chances of US launching an attack on Iran are slim.

[screwball]

Rial may soon lose 3 or 4 of its zeros

 

 

The regime decided long ago to drop at least three zeros, thereby making 1,000 old rials worth one new rial.  One US dollar, which now costs about 10,500 rials, would then cost 10.5 rials.  But the government has constantly delayed the shift.  It seems to fear inflation.

On Saturday, Finance Minister Shamseddin Hossaini said the government was planning to carry out the long delayed dropping of three zeros during the current Persian year.  But then  he added:

“The only issue that makes the government hesitant in implementing this policy is that we need maximum price stability before removing the zeros to achieve a lasting result.”

Inflation has, however, been increasing in recent months from about 10 percent annually to around 15 percent annually, which would trigger Hossaini’s fears about a lack of price stability.

Three days later, Central Bank Governor Mahmud Bahmani ignored what the finance minister had said and instead announced that the Central Bank has begun making plans to remove four zeros from the rial.  He said the completed plan will be proposed to the cabinet within six months.  He said nothing abut any inflation fears.

The dropping of zeros is not a financial shift, just a cosmetic change.  Financially, it will have no impact on the value of the currency.  But Hossaini’s comments suggested he fears a negative psychological impact that might cause the public to flee the rial for foreign currencies, which would have a financial impact and drive down the value of the rial.

The two competing announcements hint at some friction over the issue.  The Central Bank is the agency in charge of the currency.  It issues notes, not the Finance Ministry.               

 

Bahmani says 4 zeros to go—but not soon

 

 

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.

Bahmani did not indicate whether the authorities would try to maintain a fixed parity between the greenback and the Iranian currency following the zero reduction.

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 once led a vocal campaign against the dollar, calling it a weak currency.  Perhaps not coincidentally, that was when the US Treasury had started its campaign to limit Iran’s ability to conduct transactions in the dollar.  Like many of Ahmadi-nejad’s vocal campaigns, his anti-dollar diatribes have long since faded and been replaced by other rhetorical frenzies.

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.

Bahmani said Sunday that the name of the new currency would not change, but presumably he could change his mind about that just as he changed his mind about the number of zeros to be lopped off.

Bahmani also said the new rial would be “introduced gradually so that people can get used to It.”  He didn’t explain what that meant.  Normally, countries introduce currency shifts over a period of a few weeks to a few months, with the new currency appearing in banks one day, shops told to change their posted rates some days later and the old currency declared invalid later on.

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.  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 Central Bank’s posted price for the rial on Monday was 10,401 to the US dollar.

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.

 

Cabinet finally votes to lop four zeroes of rial

this week as the Central Bank governor said the plan would probably take until February 2015 to implement, two years longer than the governor said last year.

The idea of dropping excess zeroes has been bruited about for many years.  It moved front and center in the fall of 2009 when Central Bank Governor Mahmud Bahmani said a study had recommended slicing off three zeros.

That later changed to four zeros.  And on Sunday, the cabinet formally—and very belatedly—adopted the plan to carve away four zeros.

Bahmani then sowed confusion by saying it would take around three more years to bring about the change or until February 2015.

But in April of last year, Bahmani said it would take at least two years to knock off any zeros, or until April 2013.

Ten days prior to that, Bahmani said the shift would take “one to two years.”  And five days before that, he said he would present a full proposal for making the currency change to the cabinet “within the next six months.”

In other words, every time Bahmani talks about lopping off zeroes, the completion is extended still further out into the future.

Bahmani gave no explanation for the constantly changing timetable.

Bahmani did at least stick with the intention to drop four zeros from the rial, converting 10,000 rials into one rial.  He announced the four-zero drop in April of last year—changing from the three-zero drop 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 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.

At the official rate of exchange right now, one rial is  worth 8 thousandths of one US cent.   The difficulty of dealing with a currency where one unit is a measure of worthlessness rather than of value was demonstrated last week when President Ahmadi-nejad introduced to the Majlis his budget totaling 5,100,000,000,000,000 or 5.1 quadrillion rials.

 

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.

Iran's Currency Redenomination of Rial: Four Zeros, Not Three ~ Intention is to remove 4 zeros, not 3, making one rial almost equal to one dollar ...

 

 

 

 

Tuesday, April 5, 2011

 

Redenomination of Rial: Four Zeros, Not Three 

After the announcement on Sunday by Iran minister of economy that the government intends to redenominate the currency by removing three zeros, today the governor of the Central Bank of Iran (CBI) told reporters that ...

 

The intention is to remove four zeros, and not three, making one rial approximately equal to one dollar. 

 

The CBI governor said the legislative framework for redenomination of the currency would be readied within six months. He said removing four zeros from the current unit would eliminate the need for CBI to print increasingly large denomination notes. 

The reason given by CBI for the necessity of removing four zeros follow the logic offered by many of our commentators, including our own Amir Taheri, that the removal of zeros is for convenience. People would no longer need to carry large amounts of money with them, and that in practical terms there are already bank cheques in wide use that function as large denomination bills. 

The critics point out that such drastic redenomination is usually a step taken after a period of high inflation is ended and there are no expectations for a period of renewed inflation, and Iran does not meet the criteria as the gradual removal of government subsidies are expected to create a long period of high inflation.

Besides, the establishment of electronic money transfer system renders large paper bills unnecessary 
 

http://www.uskowioniran.com/2011/04/redenomination-of-rial-four-zeros-not.html

 

News

IRANIAN PUBLIC VOTES ON CURRENCY REFORM

Preliminary results show name of currency will change and four zeros will be removed from value On Saturday, the Central Bank of the Islamic Republic of Iran launched a website allowing the public to vote on key decisions relating to the future of the Iranian currency. The central bank sought public opinion on what the name of the currency should be: the choices being for it to remain the 'rial' as it is currently known, or to become either the...

 

Iran seeks dollar parity

Plans to remove 4 zeros from rial in 1 to 2 years

By 

• AFP

Published Monday, April 11, 2011

A picture taken on April 11, 2011 shows Iran's biggest dimonimation currencies, 100,000 Rials ($8.9) and 50,000 Rials in Tehran. Iran plans to slash four zeroes from the national currency in "one or two years", seeking parity between its rial and the US dollar, Central Bank Governor Mahmoud Bahmani has said (AFP)

Iran plans to slash four zeros from its national currency in "one to two years", seeking parity between its rial and the US dollar, Central Bank Governor Mahmoud Bahmani has said.

"The new rial (...) will be equal in value to one (US) dollar," the official Irna news agency quoted Bahmani as saying late Sunday. He added the plan would take "one to two years" to be implemented.

Bahmani did not indicate whether the authorities would try to maintain a fixed parity between the greenback and the Iranian currency following the planned reform.

Mulled by the government since 2007 and announced by President Mahmoud Ahmadinejad in January 2010, the plan was originally to redenominate the rial by knocking three zeros to recover the value it has lost in recent years.

The Iranian rial has dropped drastically since the Islamic revolution, from 70 to the dollar in 1979, to around 11,000 today.

Bahmani said that the name of the new currency would not change, and that it would be "introduced gradually so that people can get used to it".

"Some people think removing the zeros will weaken the national currency ... but it will instead cut inflation. Removing four zeros will also facilitate trade," Irna quoted him as saying.

Ahmadinejad has been criticised for pumping excessive liquidity into the economy to fund infrastructure projects and for causing huge money supply growth by giving loans, triggering high inflation.

The official inflation rate, which has been slowly falling in recent months, stood at 12.4 per cent for the previous Iranian calendar year which ended on March 20.

The Central Bank has been regularly injecting considerable amounts of hard currency in the market in recent months to maintain the dollar value at around 11,000 rials.

 

Iran weighs reform to stem currency crisis

Authorities propose centralised currency exchange

By 

• Reuters

Published Wednesday, September 12, 2012

Iran is hoping that radical reform of its currency market will help to stabilise the rial, which has been badly battered by Western economic sanctions, speculators and inconsistent government policy. 
 
The rial's unofficial rate plunged to record lows around 25,000 to the U.S. dollar this week, less than half its value a year ago, as Iranians rushed to convert their savings into hard currencies. They fear the sanctions, imposed over the country's disputed nuclear programme, will prevent the central bank from preserving the value of the rial.  

To combat the slide, authorities have proposed establishing a currency exchange that would bring together major traders and replace the small, scattered money changers which dot Iran's cities. 
 
The new system, if it takes effect, could be tantamount to a "managed float" of the rial in which the central bank would not fix the exchange rate but would buy and sell currency in the market to ensure the rate did not become too volatile. 

 "What's important is that the price of currency is set in a transparent market and competitive environment with the supply and demand approach," Mahmoud Dodangeh, a board member of Iran's National Development Fund (NDF), was quoted as saying this month by the Iranian Students' News Agency. 
 
But the proposal has run into heavy criticism from Iran's private sector. Businessmen argue it would do nothing to solve the country's underlying economic problems, including double-digit inflation and near-total exclusion from the international banking system because of the Western sanctions. 

 Asadollah Asgaroladi, a wealthy exporter of Iranian pistachios, dried fruit and caviar, expressed doubts about the new system at a meeting last week of the Tehran Chamber of Commerce, and in subsequent media interviews. 
 
The currency exchange "will create a new channel for corruption", Asgaroladi told Fars news agency. "According to the information that has come out so far, it seems that most of the trades in this bourse will be on the part of the government." 
  
 HARD CURRENCY 

 The rial currently trades at two key rates: the government's official "reference" rate, at which only a limited amount of dollars is available from the central bank, and a much weaker rate determined by an unofficial market, where the vast majority of Iranians obtain their foreign currency. 
 
In January the government tried to close the unofficial market by announcing an 8 percent devaluation of the official rate to 12,260 and saying it would stamp out black market traders.  
 
But the move backfired by alarming ordinary Iranians and accelerating their scramble for hard currency, pushing the unofficial rate even lower. In March, authorities backtracked and said they would let unofficial trading continue. 
 
The rial's slide threatens to push up inflation and fuel capital flight from Iran. It has also inflamed political divisions, with legislative foes of President Mahmoud Ahmadinejad accusing his administration of foot-dragging and worsening the crisis. 

 "If the government had launched the currency exchange last year through the central bank, we wouldn't be witnessing a currency shock in the market," Gholamreza Mesbahi-Moghaddam, head of parliament's planning and budget committee, was quoted as saying by Fars this week. 
 
Authorities blame much of the rial's weakness on speculators, and argue the new system would break their hold. 
 
The exchange would be open to "certified" buyers and sellers, according to government officials quoted in Iranian media this month. Futures contracts - agreements to trade the rial at certain prices on future dates - would become available later on, letting traders lock in prices and ensuring stability. 
 
Ordinary people in need of dollars, such as travellers and students, would buy hard currency from designated banks at prices determined by the exchange, Reza Azimi, director for monetary and fiscal policies at the Ministry of Economics, was quoted as saying by economic daily Donya-e Eqtesad. 
 
"Currently, market factors do not determine prices," he said. "A few people inside and outside the country have become the decision-makers." 
 
State media said the exchange might be launched at the end of the current Persian calendar month, or Sept. 21. The scheme seems to have replaced a previous plan, announced last month by central bank governor Mahmoud Bahmani, to devalue the official rate once again. 
  
 SCEPTICISM 
 
It remains to be seen, however, whether the government will go ahead with the plan for the exchange in the face of technical challenges and scepticism from some in the private sector. 
 
The NDF's Dodangeh said authorities hoped the price of the rial on the new exchange would settle somewhere between the current unofficial and official rates. 
 
To ensure stability, he said, the government would provide the exchange with an initial $5 billion of foreign currencies drawn from the NDF, a body which invests in infrastructure and is funded by oil revenues. 
 
But to function effectively, the exchange will need to persuade the mass of Iranians that it is producing fair rial rates based on market supply and demand. Otherwise, people will be reluctant to use the exchange-determined rates and continue to buy and sell dollars through the black market. 
 I'm 
"As long as there are multiple rates for the rial, they can't establish the bourse" because there will be no confidence in the values quoted by the exchange, a Tehran money changer told Reuters by telephone, declining to be named because of the political sensitivity of the issue. 
 
Some Iranian businessmen argue the proposed exchange would merely create a third rate alongside the official and unofficial rates, Donya-e Eqtesad reported. These businessmen speculated the unofficial rate might drop to 30,000. 
 
Another big question is whether the supply of dollars in sanctions-hit Iran would in the long term be large enough to meet demand at the rates determined by the exchange. 

 At the end of last year, Iran had $106 billion of official foreign reserves, enough to cover an ample 13 months of imports of goods and services in normal times, according to the International Monetary Fund.  
 
But those reserves may now have started falling as the economic sanctions hurt Iran's ability to export oil and make financing its other foreign trade more costly. Analysts estimate Iran's oil exports may have dropped by about 1 million barrels per day from roughly 2.3 million bpd last year. 
 
Nader Habibi, an economist at the Crown Center for Middle East Studies at Brandeis University in the United States, estimated the government now had about $50 billion to $70 billion of hard currency reserves remaining.  
 
Some Iranian members of parliament and importers, including Mesbahi-Moghaddam, told local media this week that the central bank had for the last several weeks failed to supply enough dollars to meet demand. This fuelled market speculation that the central bank might be cutting back its supply because it was concerned about a drop in its reserves. 
 
Central bank chief Bahmani, however, insisted the official exchange rate would remain available for use by importers who needed dollars to buy essential goods.  

 

Iran to enforce single exchange rate

Rate for dollar will be 12,260 rials from Saturday

By 

• AFP

Published Thursday, January 26, 2012

The central bank of sanctions-hit Iran is to enforce a single exchange rate after a dramatic slide in the value of the Iranian rial on the open market, state television reported on Thursday.

"From Saturday, there will be a single fixed rate for the dollar which will be 12,260 rials," central bank governor Mahmoud Bahmani announced on television.

"This rate is valid for all transactions and authorised imports... as well as for students abroad or those travelling," he said.

Iran previously had two official exchange rates: one of 11,300 rials to the dollar at the bank for state operations and official imports, and a variable rate for businesses and individuals to purchase from foreign exchange offices.

A sharp decline in foreign reserves due to Western banking sanctions imposed over Iran's nuclear programme forced the central bank in November to halt its policy of massive injections of dollars into the open market to support the rial.

The weakening of the Iranian currency, which slumped in past weeks from 13,500 to the dollar to more than 18,000, prompted the government in mid-November to set a fixed rate of 14,000, while retaining the official rate of 11,300 rials.

The move has given rise to a black market, on which the dollar shot up to 22,000 at the start of this week.

The central bank is now threatening exchange offices with closure if they sell the dollar to individuals at more than five percent above the new official rate.

[jaman]

3 minutes ago, screwball said:

TEHRAN (FNA)- Deputy director of International Affairs for Marketing and Crude Oil Operation in the National Iranian Oil Co said that Iran gives the priority to the European single currency euro as payment means of its oil export contracts.

“Our top priority is to receive cash and oil demands in euro,” Safar-Ali Karamati told Shana in the wake of removal of sanctions on oil exports and lifting the ban on banking transactions.

Asked whether Iran still prefers its oil payments to be in euros under the new contracts with foreign companies, he replied, “It depends on the mutual agreement. But NIOC would rather euro.”

He said NIOC has several options for receiving payments in reliable foreign currencies and added, “Because of their single monetary unit, European customers have no problem to pay for crude oil deals in euro.”

 

 

if this pops it will be worth the road trip

 

[screwball]

Some old articles for you to refresh!

[screwball]

Rial may soon lose 3 or 4 of its zeros

 

 

The regime decided long ago to drop at least three zeros, thereby making 1,000 old rials worth one new rial.  One US dollar, which now costs about 10,500 rials, would then cost 10.5 rials.  But the government has constantly delayed the shift.  It seems to fear inflation.

On Saturday, Finance Minister Shamseddin Hossaini said the government was planning to carry out the long delayed dropping of three zeros during the current Persian year.  But then  he added:

“The only issue that makes the government hesitant in implementing this policy is that we need maximum price stability before removing the zeros to achieve a lasting result.”

Inflation has, however, been increasing in recent months from about 10 percent annually to around 15 percent annually, which would trigger Hossaini’s fears about a lack of price stability.

Three days later, Central Bank Governor Mahmud Bahmani ignored what the finance minister had said and instead announced that the Central Bank has begun making plans to remove four zeros from the rial.  He said the completed plan will be proposed to the cabinet within six months.  He said nothing abut any inflation fears.

The dropping of zeros is not a financial shift, just a cosmetic change.  Financially, it will have no impact on the value of the currency.  But Hossaini’s comments suggested he fears a negative psychological impact that might cause the public to flee the rial for foreign currencies, which would have a financial impact and drive down the value of the rial.

The two competing announcements hint at some friction over the issue.  The Central Bank is the agency in charge of the currency.  It issues notes, not the Finance Ministry.               

 

Bahmani says 4 zeros to go—but not soon

 

 

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.

Bahmani did not indicate whether the authorities would try to maintain a fixed parity between the greenback and the Iranian currency following the zero reduction.

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 once led a vocal campaign against the dollar, calling it a weak currency.  Perhaps not coincidentally, that was when the US Treasury had started its campaign to limit Iran’s ability to conduct transactions in the dollar.  Like many of Ahmadi-nejad’s vocal campaigns, his anti-dollar diatribes have long since faded and been replaced by other rhetorical frenzies.

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.

Bahmani said Sunday that the name of the new currency would not change, but presumably he could change his mind about that just as he changed his mind about the number of zeros to be lopped off.

Bahmani also said the new rial would be “introduced gradually so that people can get used to It.”  He didn’t explain what that meant.  Normally, countries introduce currency shifts over a period of a few weeks to a few months, with the new currency appearing in banks one day, shops told to change their posted rates some days later and the old currency declared invalid later on.

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.  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 Central Bank’s posted price for the rial on Monday was 10,401 to the US dollar.

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.

 

Cabinet finally votes to lop four zeroes of rial

this week as the Central Bank governor said the plan would probably take until February 2015 to implement, two years longer than the governor said last year.

The idea of dropping excess zeroes has been bruited about for many years.  It moved front and center in the fall of 2009 when Central Bank Governor Mahmud Bahmani said a study had recommended slicing off three zeros.

That later changed to four zeros.  And on Sunday, the cabinet formally—and very belatedly—adopted the plan to carve away four zeros.

Bahmani then sowed confusion by saying it would take around three more years to bring about the change or until February 2015.

But in April of last year, Bahmani said it would take at least two years to knock off any zeros, or until April 2013.

Ten days prior to that, Bahmani said the shift would take “one to two years.”  And five days before that, he said he would present a full proposal for making the currency change to the cabinet “within the next six months.”

In other words, every time Bahmani talks about lopping off zeroes, the completion is extended still further out into the future.

Bahmani gave no explanation for the constantly changing timetable.

Bahmani did at least stick with the intention to drop four zeros from the rial, converting 10,000 rials into one rial.  He announced the four-zero drop in April of last year—changing from the three-zero drop 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 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.

At the official rate of exchange right now, one rial is  worth 8 thousandths of one US cent.   The difficulty of dealing with a currency where one unit is a measure of worthlessness rather than of value was demonstrated last week when President Ahmadi-nejad introduced to the Majlis his budget totaling 5,100,000,000,000,000 or 5.1 quadrillion rials.

 

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.

Iran's Currency Redenomination of Rial: Four Zeros, Not Three ~ Intention is to remove 4 zeros, not 3, making one rial almost equal to one dollar ...

 

 

 

 

Tuesday, April 5, 2011

 

Redenomination of Rial: Four Zeros, Not Three 

After the announcement on Sunday by Iran minister of economy that the government intends to redenominate the currency by removing three zeros, today the governor of the Central Bank of Iran (CBI) told reporters that ...

 

The intention is to remove four zeros, and not three, making one rial approximately equal to one dollar. 

 

The CBI governor said the legislative framework for redenomination of the currency would be readied within six months. He said removing four zeros from the current unit would eliminate the need for CBI to print increasingly large denomination notes. 

The reason given by CBI for the necessity of removing four zeros follow the logic offered by many of our commentators, including our own Amir Taheri, that the removal of zeros is for convenience. People would no longer need to carry large amounts of money with them, and that in practical terms there are already bank cheques in wide use that function as large denomination bills. 

The critics point out that such drastic redenomination is usually a step taken after a period of high inflation is ended and there are no expectations for a period of renewed inflation, and Iran does not meet the criteria as the gradual removal of government subsidies are expected to create a long period of high inflation.

Besides, the establishment of electronic money transfer system renders large paper bills unnecessary 
 

http://www.uskowioniran.com/2011/04/redenomination-of-rial-four-zeros-not.html

 

News

IRANIAN PUBLIC VOTES ON CURRENCY REFORM

Preliminary results show name of currency will change and four zeros will be removed from value On Saturday, the Central Bank of the Islamic Republic of Iran launched a website allowing the public to vote on key decisions relating to the future of the Iranian currency. The central bank sought public opinion on what the name of the currency should be: the choices being for it to remain the 'rial' as it is currently known, or to become either the...

 

Iran seeks dollar parity

Plans to remove 4 zeros from rial in 1 to 2 years

By 

• AFP

Published Monday, April 11, 2011

A picture taken on April 11, 2011 shows Iran's biggest dimonimation currencies, 100,000 Rials ($8.9) and 50,000 Rials in Tehran. Iran plans to slash four zeroes from the national currency in "one or two years", seeking parity between its rial and the US dollar, Central Bank Governor Mahmoud Bahmani has said (AFP)

Iran plans to slash four zeros from its national currency in "one to two years", seeking parity between its rial and the US dollar, Central Bank Governor Mahmoud Bahmani has said.

"The new rial (...) will be equal in value to one (US) dollar," the official Irna news agency quoted Bahmani as saying late Sunday. He added the plan would take "one to two years" to be implemented.

Bahmani did not indicate whether the authorities would try to maintain a fixed parity between the greenback and the Iranian currency following the planned reform.

Mulled by the government since 2007 and announced by President Mahmoud Ahmadinejad in January 2010, the plan was originally to redenominate the rial by knocking three zeros to recover the value it has lost in recent years.

The Iranian rial has dropped drastically since the Islamic revolution, from 70 to the dollar in 1979, to around 11,000 today.

Bahmani said that the name of the new currency would not change, and that it would be "introduced gradually so that people can get used to it".

"Some people think removing the zeros will weaken the national currency ... but it will instead cut inflation. Removing four zeros will also facilitate trade," Irna quoted him as saying.

Ahmadinejad has been criticised for pumping excessive liquidity into the economy to fund infrastructure projects and for causing huge money supply growth by giving loans, triggering high inflation.

The official inflation rate, which has been slowly falling in recent months, stood at 12.4 per cent for the previous Iranian calendar year which ended on March 20.

The Central Bank has been regularly injecting considerable amounts of hard currency in the market in recent months to maintain the dollar value at around 11,000 rials.

 

Iran weighs reform to stem currency crisis

Authorities propose centralised currency exchange

By 

• Reuters

Published Wednesday, September 12, 2012

Iran is hoping that radical reform of its currency market will help to stabilise the rial, which has been badly battered by Western economic sanctions, speculators and inconsistent government policy. 
 
The rial's unofficial rate plunged to record lows around 25,000 to the U.S. dollar this week, less than half its value a year ago, as Iranians rushed to convert their savings into hard currencies. They fear the sanctions, imposed over the country's disputed nuclear programme, will prevent the central bank from preserving the value of the rial.  

To combat the slide, authorities have proposed establishing a currency exchange that would bring together major traders and replace the small, scattered money changers which dot Iran's cities. 
 
The new system, if it takes effect, could be tantamount to a "managed float" of the rial in which the central bank would not fix the exchange rate but would buy and sell currency in the market to ensure the rate did not become too volatile. 

 "What's important is that the price of currency is set in a transparent market and competitive environment with the supply and demand approach," Mahmoud Dodangeh, a board member of Iran's National Development Fund (NDF), was quoted as saying this month by the Iranian Students' News Agency. 
 
But the proposal has run into heavy criticism from Iran's private sector. Businessmen argue it would do nothing to solve the country's underlying economic problems, including double-digit inflation and near-total exclusion from the international banking system because of the Western sanctions. 

 Asadollah Asgaroladi, a wealthy exporter of Iranian pistachios, dried fruit and caviar, expressed doubts about the new system at a meeting last week of the Tehran Chamber of Commerce, and in subsequent media interviews. 
 
The currency exchange "will create a new channel for corruption", Asgaroladi told Fars news agency. "According to the information that has come out so far, it seems that most of the trades in this bourse will be on the part of the government." 
  
 HARD CURRENCY 

 The rial currently trades at two key rates: the government's official "reference" rate, at which only a limited amount of dollars is available from the central bank, and a much weaker rate determined by an unofficial market, where the vast majority of Iranians obtain their foreign currency. 
 
In January the government tried to close the unofficial market by announcing an 8 percent devaluation of the official rate to 12,260 and saying it would stamp out black market traders.  
 
But the move backfired by alarming ordinary Iranians and accelerating their scramble for hard currency, pushing the unofficial rate even lower. In March, authorities backtracked and said they would let unofficial trading continue. 
 
The rial's slide threatens to push up inflation and fuel capital flight from Iran. It has also inflamed political divisions, with legislative foes of President Mahmoud Ahmadinejad accusing his administration of foot-dragging and worsening the crisis. 

 "If the government had launched the currency exchange last year through the central bank, we wouldn't be witnessing a currency shock in the market," Gholamreza Mesbahi-Moghaddam, head of parliament's planning and budget committee, was quoted as saying by Fars this week. 
 
Authorities blame much of the rial's weakness on speculators, and argue the new system would break their hold. 
 
The exchange would be open to "certified" buyers and sellers, according to government officials quoted in Iranian media this month. Futures contracts - agreements to trade the rial at certain prices on future dates - would become available later on, letting traders lock in prices and ensuring stability. 
 
Ordinary people in need of dollars, such as travellers and students, would buy hard currency from designated banks at prices determined by the exchange, Reza Azimi, director for monetary and fiscal policies at the Ministry of Economics, was quoted as saying by economic daily Donya-e Eqtesad. 
 
"Currently, market factors do not determine prices," he said. "A few people inside and outside the country have become the decision-makers." 
 
State media said the exchange might be launched at the end of the current Persian calendar month, or Sept. 21. The scheme seems to have replaced a previous plan, announced last month by central bank governor Mahmoud Bahmani, to devalue the official rate once again. 
  
 SCEPTICISM 
 
It remains to be seen, however, whether the government will go ahead with the plan for the exchange in the face of technical challenges and scepticism from some in the private sector. 
 
The NDF's Dodangeh said authorities hoped the price of the rial on the new exchange would settle somewhere between the current unofficial and official rates. 
 
To ensure stability, he said, the government would provide the exchange with an initial $5 billion of foreign currencies drawn from the NDF, a body which invests in infrastructure and is funded by oil revenues. 
 
But to function effectively, the exchange will need to persuade the mass of Iranians that it is producing fair rial rates based on market supply and demand. Otherwise, people will be reluctant to use the exchange-determined rates and continue to buy and sell dollars through the black market. 
 I'm 
"As long as there are multiple rates for the rial, they can't establish the bourse" because there will be no confidence in the values quoted by the exchange, a Tehran money changer told Reuters by telephone, declining to be named because of the political sensitivity of the issue. 
 
Some Iranian businessmen argue the proposed exchange would merely create a third rate alongside the official and unofficial rates, Donya-e Eqtesad reported. These businessmen speculated the unofficial rate might drop to 30,000. 
 
Another big question is whether the supply of dollars in sanctions-hit Iran would in the long term be large enough to meet demand at the rates determined by the exchange. 

 At the end of last year, Iran had $106 billion of official foreign reserves, enough to cover an ample 13 months of imports of goods and services in normal times, according to the International Monetary Fund.  
 
But those reserves may now have started falling as the economic sanctions hurt Iran's ability to export oil and make financing its other foreign trade more costly. Analysts estimate Iran's oil exports may have dropped by about 1 million barrels per day from roughly 2.3 million bpd last year. 
 
Nader Habibi, an economist at the Crown Center for Middle East Studies at Brandeis University in the United States, estimated the government now had about $50 billion to $70 billion of hard currency reserves remaining.  
 
Some Iranian members of parliament and importers, including Mesbahi-Moghaddam, told local media this week that the central bank had for the last several weeks failed to supply enough dollars to meet demand. This fuelled market speculation that the central bank might be cutting back its supply because it was concerned about a drop in its reserves. 
 
Central bank chief Bahmani, however, insisted the official exchange rate would remain available for use by importers who needed dollars to buy essential goods.  

 

Iran to enforce single exchange rate

Rate for dollar will be 12,260 rials from Saturday

By 

• AFP

Published Thursday, January 26, 2012

The central bank of sanctions-hit Iran is to enforce a single exchange rate after a dramatic slide in the value of the Iranian rial on the open market, state television reported on Thursday.

"From Saturday, there will be a single fixed rate for the dollar which will be 12,260 rials," central bank governor Mahmoud Bahmani announced on television.

"This rate is valid for all transactions and authorised imports... as well as for students abroad or those travelling," he said.

Iran previously had two official exchange rates: one of 11,300 rials to the dollar at the bank for state operations and official imports, and a variable rate for businesses and individuals to purchase from foreign exchange offices.

A sharp decline in foreign reserves due to Western banking sanctions imposed over Iran's nuclear programme forced the central bank in November to halt its policy of massive injections of dollars into the open market to support the rial.

The weakening of the Iranian currency, which slumped in past weeks from 13,500 to the dollar to more than 18,000, prompted the government in mid-November to set a fixed rate of 14,000, while retaining the official rate of 11,300 rials.

The move has given rise to a black market, on which the dollar shot up to 22,000 at the start of this week.

The central bank is now threatening exchange offices with closure if they sell the dollar to individuals at more than five percent above the new official rate.

[screwball]

http://www.presstv.com/Detail/2016/08/13/479819/Iran-US-Boeing-plane-purchase-Akhundi

[screwball]

In January, Iran signed a major contract with European aviation giant Airbus worth about $27 billion to buy 118 planes within the next few months. The contract was signed during the visit to Paris by Iran’s President Hassan Rouhani.

Iran also sealed a deal in June worth around $25 billion with the US aerospace heavyweight, Boeing, for the purchase of 100 passenger planes.    

The deal with Boeing is still facing a possible ban by Congress in what many see as a result of the growing anti-Iran measures adopted by US lawmakers. 

Iran is also working on a scheme to purchase planes from the aviation arm of Japan’s Mitsubishi Heavy Industries.  Officials in Tehran recently announced that Tokyo has agreed to fund Iran’s purchase of Mitsubishi planes.  

[screwball]

Over 100 billion worth of orders.....Japan, Malaysia, vietjet, iraq, China south west.....hmmm all emerging economies? There is a theme there? So if you can figure out what you think it is?

[screwball]

http://fortune.com/2016/02/15/this-is-how-much-boeing-thinks-the-south-east-asian-market-is-worth/

[markb57]

so if the deal for just euro happens, you could just fly to europe and open an acct and cash out I guess. so, has all the zero dropping settled down or still in flux?

[screwball]

1 hour ago, jaman said:

if this pops it will be worth the road trip

 

It will and yes I agree, there is no end to where I will travel! 

[screwball]

45 minutes ago, markb57 said:

so if the deal for just euro happens, you could just fly to europe and open an acct and cash out I guess. so, has all the zero dropping settled down or still in flux?

Nah I didn't post dates on those articles but it has been quite for months...the reality is there was a recent article that had them stating a move to single forex rate on international markets by october. You had to be a paid member to access site, and I know someone posted it. It mentions moving to a value exact term was "real worth" 

[screwball]

China Southern unit, Xiamen Airlines, to buy Boeing jets for $1.4 billion

China Southern Airlines (600029.SS) said on Wednesday its subsidiary, Xiamen Airlines, had signed an agreement to buy six airplanes from Boeing Co (BA.N) worth $1.4 billion at list prices.

China Southern Airlines Co Ltd (1055.HK) (ZNH.N), and its subsidiary, Xiamen Airlines, have been placing large aircraft orders as they look to expand fleets to meet booming growth in travel by Chinese.

The B787-9 airplanes will be delivered to Xiamen Airlines between 2016 to 2018, China Southern told the Shanghai stock exchange in a statement.
 

Malaysia Airlines said on Wednesday it had ordered 50 Boeing BA 0.82% 737 MAX jets, with firm orders for 25 and rights to purchase 25 more.
 
Deliveries will begin in 2019 and the deal is worth $5.5 billion at list prices, the full-service carrier said in a statemen

 

he deal, signed during President Barack Obama’s visit, is worth $11.3 billion at list prices.
Vietnam’s VietJet on Monday agreed a firm order of 100 Boeing 737 MAX 200 jets worth $11.3 billion at list prices, making it one of Southeast Asia’s fastest-growing low-cost carriers

[climber7]

 

Okay, in case I buy in...which is better--circulated or uncirculated?   And please explain in layman's terms why.. 

 

Thank you!

[screwball]

1 hour ago, climber7 said:

 

Okay, in case I buy in...which is better--circulated or uncirculated?   And please explain in layman's terms why.. 

 

Thank you!

I bought new and no reasons except for latest security measures! 

[Freedomwish]

"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.

I take it, the count down of that "one to two years" implementation starts also in October? or it had already started two years ago?

[screwball]

24 minutes ago, Freedomwish said:

"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.

I take it, the count down of that "one to two years" implementation starts also in October? or it had already started two years ago?

No it's this october! That I am waiting on but the financial year ends march! You need to remember that it has been on hold because of sanctions whilst they used the sanctions to build forex reserves.