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Central Bank of Iran: We can not provide hard currency


yota691
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http://www.payvand.com/news/1 8/apr/1094.html ......... 

Iranians Hit By 'Perfect Currency Storm'

April 22, 2018 14:20 GMT
Iranian travelers stand in front of a currency exchange in Tehran, hoping to exchange money on April 11.
Iranian travelers stand in front of a currency exchange in Tehran, hoping to exchange money on April 11.
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Every day, hundreds head to Tehran's bustling Ferdowsi street to buy foreign currency, only to find that many exchange offices have shut up shop, have turned off their currency-rate displays, or have signs up reading, "We don't have U.S. dollars to sell."

A nationwide dollar-buying panic is in full swing, spurred by the plunging value of the Iranian rial, a sluggish economy, and fears that the United States will reimpose crippling sanctions on the Islamic republic.

With the rial hitting all-time lows, the government has imposed an official exchange rate of 42,000 rials against the dollar, set a cap on the amount of foreign currency that citizens can hold outside banks, and sent police to patrol exchange shops to ensure that no under-the-table currency trading is going on.

But economists say the new currency measures will be difficult to maintain. Exchangers are hoarding U.S. dollars, and Iranians who require foreign hard currency for business or travel are already defying the government and turning to the black market, where the rate has skyrocketed.

"A few days ago, I went to several exchange offices to buy $300," a Tehran businessman who did not want to reveal his name told RFE/RL's Radio Farda. "But I couldn't even purchase $100. So I was forced to buy several hundred dollars on the black market. I paid 58,000 rials for $1."

The businessman said exchange offices had U.S. dollars to sell, but would not do so for the government's set rate of 42,000 rials. Instead, he said, exchangers were still selling dollars for free-market exchange rates, despite Tehran's warning that those caught trading foreign currency outside official rates would face arrest.

"The currency crisis has made us poor," he said. "But I have an import business so I need to buy American dollars otherwise I can't continue my work."

'We Weren't Prepared For This'

The new measures are affecting Iranians who study, travel, or do business abroad, as well as those who keep their savings in dollars.

"My family sent my brother to study overseas," a young Iranian man told Radio Farda on condition of anonymity. "The day he left, the [free-market] exchange rate was 35,000 rials to every dollar. Now, unfortunately, the dollar has reached 60,000 rials."

"Now, we can't afford to send him money anymore," the young man said, adding that "we weren't prepared for this."

Police patrol exchange shops to ensure that no under-the-table currency trading is going on.
Police patrol exchange shops to ensure that no under-the-table currency trading is going on.

 

President Hassan Rohani, who was elected to a second term in 2017 on pledges to boost jobs and the recession-hit economy, has been under fire. In January, grievances against the government spilled over into antigovernment protests across Iran. The demonstrations were crushed, leaving at least 25 people dead.

"One of the reasons I voted for Rohani was because I thought he would improve the economy," the young man said. "But in the last few months we have seen, unfortunately, that the administration doesn't have the necessary policies or ability to improve the economy."

'Perfect Currency Storm'

Iran's currency has lost close to half its value on the free market since September, when the dollar was at 36,000 rials. The currency hit a record low of 60,000 on the free market last week.

Steve Hanke, an economist teaching at Johns Hopkins University in Baltimore, says economic mismanagement and residual international sanctions on Iran have worked to "create a perfect currency storm."

Iran has been unable to reap the full benefits of the 2015 nuclear deal with world powers -- under which Tehran curbed its contentious nuclear program in exchange for sanctions relief.

This is partly due to resistance among Iran's hard-line conservative camp to opening up the state-controlled economy, residual U.S. sanctions linked to Iran's human rights record and ballistic-missile program, and European companies' continued wariness of investing in Iran because of fears of U.S. penalties. Economists say this has severely affected Iran's access to trading relationships, finance, and foreign investment.

Valiollah Seif, the current governor of the Central Bank of Iran, has blamed "enemies" and "traces of plotting."
Valiollah Seif, the current governor of the Central Bank of Iran, has blamed "enemies" and "traces of plotting."

 

The spiraling currency has also been driven by fears of a return of crippling sanctions if U.S. President Donald Trump carries out his threat to exit the nuclear deal with Tehran.

Iran has long had trouble managing its currency market. In 2012, the government tried to set an official, single, rate for the currency, but the attempt failed.

"The new currency system is bound to fail," Hanke says. "Iranians will continue to flock to the black market for the safety of foreign currency. Also, no economy has ever been given life by devaluations."

"The currency crisis will not stimulate exports and it will not stimulate domestic production either," he adds. "The weak rial will be associated with higher interest rates and more inflation, however."

'Economic War'

Rohani's government has deflected blame for the currency crisis on detractors at home and abroad. Government spokesman Mohammad Baqer Nobakht said on April 10 that Iran was in an "economic war, and enemies seek to create problems for our economy."

The head of Iran's central bank, Valiollah Seif, was met with angry objections and interruptions from lawmakers in parliament last week, with many demanding his resignation.

Seif blamed the plunging value of the rial on "lack of certainty" about the future and said that "enemies know the issue and try to use any opportunity" to create trouble for Iran. He also referred to "traces of plotting" by regional rivals, including Saudi Arabia and the United Arab Emirates, without elaborating.

Vice President Eshagh Jahangiri blamed "noneconomic, unjustified, and unpredictable factors" for the rial's collapse, given that he said the country's exports were performing strongly.

"There should not be such incidents in an economy that always has a surplus of foreign currency. Some say interference by foreign hands is disrupting the economic climate and some say domestic machinations are spurring these things in order to destabilize the climate in the country," Jahangiri added.

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 Date: 23/04/2018 Time: 19:54 

 

Minister of Industry:

The aim of unifying the foreign exchange rate is to counter smuggling

TEHRAN, April 23 (KUNA) - Minister of Industry, Mines and Trade Mohammad Shariatmadari said that the government's decision to unify the exchange rate contributed to the stability of the market. He said that the most important achievement achieved by stabilizing the exchange rate is facing the smuggling of capital abroad.

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During the opening ceremony of the Nima system to consolidate the exchange rate of foreign currency in the country in the presence of the First Vice President of the Republic on Monday, Shariatmadari said that the progress achieved by the process of unifying the exchange rate will contribute to greater openness and solving existing problems. 
He expressed the readiness of the Ministry of Industry to support the implementation of the project to consolidate the exchange rate of currency and work to provide the country's needs related to commodities and pharmaceuticals and even to import heavy machinery needed by the country. 
He pointed out that the government's decision to make all exporters working in the public and private sectors under the regime approved by the government on foreign currency, pointing out that this will help the government to determine priorities for providing the size of the currency needed for the country. 
Finished

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GMT 21:29 2018 Monday , April 23 : Last Updated
  • _100988107_046080671-1.jpg

    The Iranian currency has fallen to all-time lows due to concerns about possible re-imposition of sanctions on Iran

    AFP
 
 

The Iranian currency has fallen to all-time lows due to concerns about possible re-imposition of sanctions on Iran

AFP
 
 

Iran's central bank has banned Iranian banks from trading in encrypted electronic currencies, including the Pitcone currency, on concerns of money laundering, the IRNA news agency reported.

The decision comes as the country seeks to control a currency crisis.

"Banks, borrowing agencies and currency exchange offices should avoid selling or buying these currencies or taking any action to promote them," IRNA quoted a central bank statement on instructions to issue a currency-laundering device in December.

Iran this month took measures to unify the currency exchange rate in banks and the currency exchange market and banned currency transfers outside banks after the Iranian currency fell to its lowest levels ever given fears of a possible re-imposition of sanctions on Iran.

On May 12, US President Donald Trump will decide whether the United States will re-impose economic sanctions on Iran, which would be a severe blow to the nuclear deal between Iran and six international powers. Trump has pressed European countries to work with Washington to amend the deal.

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Iran / Iran date: 2018 Apr / Nissan 's 26 - GMT 10:40
 
 
 

Iranian President Hassan Rowhani announced that the foreign currency revenues of the country are undergoing reassuring conditions, and the needs of foreign liquidity are covered through the new system and with full transparency.

The government's policy on foreign currencies is aimed at stabilizing the market, which in turn requires sustained economic growth in the country, which requires consensus and cooperation between the private sector and banks, Rowhani said during a meeting of the government's economic headquarters on Thursday. 

President Rouhani stressed the need to speed up the process of buying foreign liquidity from exporters within the new system, and give banks the facilities and incentives necessary to attract deposits denominated in dollars.

The meeting was attended by officials of the Iranian Chamber of Commerce, Industry, Agriculture and Mines, the Federation of Technical and Engineering Services Exporters, the Association of Biochemical Exporters and the Metal House, and directors of government and private banks.

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  • yota691 changed the title to Iran seeks to achieve quality banking standards
 

 Date: 28/24/2018 Time: 15:08 

 

Iranian Foreign Assistant:

Iran seeks to achieve quality banking standards

TEHRAN, April 28 (Xinhua) - Despite a gap between the standards of Iranian banking and international banking, we seek to bridge this gap, said Assistant Foreign Affairs Minister for Economic Affairs Gholamreza Ansari.

n82899831-72310920.jpg

Gholamreza Ansari, speaking at the sixth banking trade forum between Iran and Europe, considered the priority of economic development as a priority of the Iranian government's policy. He said that the Iranian Foreign Ministry, as the leader in the diplomatic and economic affairs, Prepared for the external affairs of the economy. 
Ansari said that the aim of establishing the economic department in the Ministry of Foreign Affairs comes within the framework of expanding economic cooperation with neighboring countries and other countries wishing to start such cooperation. 
"Iran has yet to abide by the terms of the nuclear agreement, although some have broken their promises, but the situation is becoming increasingly difficult for the Iranian side to continue to abide by the agreement," he said.
Ansari stressed that cutting banking ties during the embargo period created a gap between international banking standards and Iranian standards. We are now working to bridge this gap, relying on local expertise and cadres. 
Ansari also said that European countries could support and establish a banking structure independent of the US decision to play a more active role. 
The sixth banking trade forum between Iran and Europe began on Sunday in Tehran and will continue until Monday. 
Finished ** PG ** 1718

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  • yota691 changed the title to The IMF supports Iran's move to unify the riyal exchange rate
 date: 2018 May / May 3 - GMT 06:24
 
 
 

An official at the International Monetary Fund said that Iran's decision last month to unify the currency exchange rate in the official and free markets to support the riyal is a step in the right direction.
 

Iranian authorities announced last month that they would unify the official exchange rate of the riyal and its price in the free market for a flat rate of 42,000 riyals against the US dollar.

Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund, said unification "helps to eliminate distortions and improves the competitiveness of the economy."

"This must be accompanied by maintaining a fiscal adjustment to reduce the level of the budget deficit, reforming the banking system, in particular banks facing difficulties, and allowing the private sector to grow," Azour said.

Trump is due to decide on May 12 whether the United States should break a nuclear deal with Iran, under which Tehran agreed to cut its nuclear program in return for lifting the economic embargo.

Asked about the possible impact on the Iranian economy and the currency, Azour said, "Any step in this direction will increase risk exposure because of the uncertainty that will come with that kind of change."

"There is a need for greater caution in terms of macroeconomic management in order to withstand any negative impact of these policies, and the best way to do this is to accelerate some of the reforms that are required to be applied."


 

Source: Reuters

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ha ha ha doesnt the last article say it all?..they need to accelerate reforms..

 

I also liked the comment in the other article....Also, no economy has ever been given life by devaluations.".. ;)

Edited by mylilpony
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  • yota691 changed the title to Historical falls hit the currencies of Turkey and Iran amid stability of the Iraqi dinar

Historical falls hit the currencies of Turkey and Iran amid stability of the Iraqi dinar

Historical falls hit the currencies of Turkey and Iran amid stability of the Iraqi dinar


Historical falls hit the currencies of Turkey and Iran amid stability of the Iraqi dinar
 Twilight News    
 8 hours ago

The Turkish lira and the Iranian tumans experienced a historic decline against the dollar exchange rate amid the stability witnessed by the Iraqi dinar. 
On April 10, Iran took drastic steps to set the local currency rate against the dollar in an effort to stop its decline after losing about a third of its value in six months. 
Thus, the rate of exchange was set at one dollar against 42,000 riyals-tumans as a reference for exchange operations with other currencies at their prices compared to the exchange rate in the United States. 
"The price of the Iranian Toman fell to an unprecedented level in the history of the country, reaching 60300 dollars for $ 100 at the money exchange shops inside Iran," the banking offices in Iran told Shafak News. 
Currency experts blame the historic collapse on the problems of the nuclear program with the United States, internal problems between the front of President Hassan Rowhani and Iran's Revolutionary Guard Front.
On April 15, the central bank banned "until further notice" the exchange offices to buy or sell hard currencies, leaving only banks to authorize such trades. But in practice, the banks refuse to do so, according to several statements. 
In the wake of US financial sanctions against Tehran, international credit cards have become out of use in Iran and tourists must bring in enough hard currency to stay. 
In Turkey, data showed on Thursday that consumer price inflation rose more-than-expected in April to about 11 percent year-on-year, pushing the lira to a record low as concerns over the central bank's inability to control price hikes.
Inflation, which has a double-digit rate and a 10-percent lira against the dollar since the beginning of the year, is a source of growing concern for the government as it prepares for early parliamentary and presidential elections on June 24. 
The consumer price index rose 1.87 percent on a monthly basis, exceeding expectations in a Reuters poll of 1.6 percent, the index said. The index rose 10.85 percent year-on-year. 
Basic inflation rose 12.24 percent year-on-year, Reuters reported. 
The lira, one of the worst performing currencies in emerging markets since the beginning of the year, fell to a record low of 4.2487 lira against the dollar, from a high of 4.1785 on Wednesday. 
At 07:05 GMT it was trading at 4.2005 against the dollar.
Amid currency turmoil in neighboring Iran and Turkey, the currency in Iraq is stable against the dollar exchange rate. 
The Iraqi Central Bank commented that "the improvement of the value of the Iraqi dinar against the dollar, is not a new phenomenon, but the outcome of the work continued for a full year, was through the identification of significant measures on the process of currency presentation and address the violations of demand. 
It says Iraq's cash reserves exceeded $ 50 billion.

Keywords: 

 
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BL, that is correct. I believe 200 billion dollars in assets equates to around 236trillion dinars in todays iqd's rate. Now given the amount of dinars (i dont quite know the exact amount) of 60trillion in total circulation in n out of iraq....the rate of dinar if it was to revalue with the amount of assets (200 billion dollars)--------> 1iqd=4dollars...not trying to be albert einstein but iam not too bad with numbers either.

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Iran’s amb. to Pakistan:

Iran, Pakistan currency swap agreement to be launched soon

rrrrr
News ID: 4287338 - Fri 4 May 2018 - 14:19
TEHRAN, May 04 (MNA) – Ambassador of the Islamic Republic of Iran to Pakistan Mehdi Honardoost has said that a currency swap deal and resumption of banking channels between Iran and Pakistan is under process.

Speaking at Lahore Chamber of Commerce, Industries and Mines, the Iranian envoy to Pakistan said that bilateral trade between the two countries would be promoted and Iranian banks will inaugurate branches in Pakistan once the currency swap agreement is inked.

Last year the State Bank of Pakistan (SBP) and Central Bank of Iran (CBI) reached an agreement on banking and payment system, as the two countries seek to raise the volume of bilateral trade to $5 billion.

Mehdi Honardoost expressing his views said Iran and Pakistan have multi-functional and multi-aspect relations. “Both countries should adopt a new approach and move forward. Though trade between the two countries is growing, it is below the potential.

“Business organizations of both countries should be given wake-up calls so that they can play their due role for strengthening trade and economic ties. Iranian Embassy and Consulate are always open for Pakistan’s business community.”

He went on to say that Iranian Free Trade Zones have great potential for Pakistani businessmen and they should avail this opportunity through joint ventures.

The ambassador added that the China-Pakistan Economic Corridor is a big achievement that would help reduce tensions in the region, adding that Iran wants to be a part of this project as it provides opportunities and offers regional cooperation.

For his part, The LCCI President Malik Tahir Javaid applauded the efforts of Iranian Ambassador for initiating direct flights from Lahore, Karachi and Islamabad to Tehran and Mashhad. He urged the Iranian Ambassador to bring forward the telecommunication companies from Iran since the talk time from Pakistan with Iran cost almost 3 times as compared to other countries.

In conclusion, he said that both Pakistan and Iran have well-developed seaports. There should be sufficient arrangements for direct shipping through Karachi and upcoming Gwadar Port with Chabahar and Bandar Abbas Port.

MA/82904785

 

 
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Its funny when trump puts the squeeze on pakistan and wont continue their billions in aid they get from us, that they show their true colors just like trump said. I dont think that this arrangement is going to sit too well beings that pakistan is a nuclear country that is about to do currency swaps with Iran a country that is about to get its come upins .. ;)

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23 hours ago, mylilpony said:

ha ha ha doesnt the last article say it all?..they need to accelerate reforms..

 

I also liked the comment in the other article....Also, no economy has ever been given life by devaluations.".. ;)

Nice to see you out and about mylilpony. :bump:

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  What!? The iranian rial is already 10 times more worthless than dinar ,add another 0 to the right of the decimal .  How can it be more worthless ? Someone please tell me  because I'm about ready to  have  a spazzattack

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20 hours ago, navira45 said:

BL, that is correct. I believe 200 billion dollars in assets equates to around 236trillion dinars in todays iqd's rate. Now given the amount of dinars (i dont quite know the exact amount) of 60trillion in total circulation in n out of iraq....the rate of dinar if it was to revalue with the amount of assets (200 billion dollars)--------> 1iqd=4dollars...not trying to be albert einstein but iam not too bad with numbers either.

Thanks for your input navira45,

 

I believe the dinar in circulation is much less than 60 trillion.... The CBI has been reducing the note count for many years.

 

$200 billion dollars in assets = 236 trillion IQD / 60 trillion IQD in circulation = $3,93 per dinar

$51,5 billion dollars in reserves = $60.9 trillion IQD / 60 trillion IQD in circulation = $1.01 per dinar

 

I will be happy with any of the two rates.

 

Go CBI

Go new monetary policy

Go RV

Go lower denomination notes

Go purchasing power

 

 

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Hey LB, i think the reserve and money in circulations are both equal.

Money reserve = Money in circulation

Because dinars are sold in exchange for dollars...money out (dinars) in circulation and money in goes into reserve (dollars). In any case i love the 2 rates. Cheers bro

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Iran / Iran date: 2018 May / May 5 - GMT 05:10
 
 
 

The International Monetary Fund (IMF) expects Iran's GDP to reach $ 418.9 billion in 2018, down from $ 431.9 billion for the 2017 estimates.

The IMF said in its report "The Middle East Regional Economic Outlook" that it expects Iran to boost foreign exchange reserves in 2018 by $ 13.3 billion to $ 108.4 billion, up from $ 95.1 billion in 2017. 

The report estimated that Iran's external debt ratio was 2.2 Up from 2 percent last year.

He also predicted a decline in oil revenues from gross domestic product to 4.6 percent in 2018, compared with 5.2 percent in 2017.

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 Date: 2018/05/06 Time: 01:35 

Governor of the Central Bank: Control of the hard currency market is underway at present

TEHRAN, May 6 (KUNA) - 
The governor of the Central Bank of Iran (CBE), Aliullah Saif, said that the comprehensive control of the country's hard currency market is under way after the launch of the Nema system.

n82906106-72322220.jpg

This came in a statement made by Saif during his meeting Saturday with the general managers of banks and financial institutions and representatives of cashiers to discuss the system 'Nima'. 
The Governor of the Central Bank said that the system 'Nima' was well received at the beginning of its activity by players in the hard currency market, adding that the banks and bankers as key players in this system to recognize their status and to be active in light of their influential role and provided the ground to strengthen this system as a tool to stabilize Hard currency market. 
He added that the system will be considered by the Nima system over time and that the Central Bank welcomes any criticism and suggestion in this field in order to improve the performance of the system.
The comprehensive system of currency transactions (Nima system) was launched shortly before by the Central Bank to facilitate the provision of currency and create a safe environment for customers and sellers and provide the possibility of creating an atmosphere of competition between cashiers to provide currency to customers. 
There are four main players in the NIMA system, the 'goods and services' as hard currency customers and the 'exporters of goods and services' as hard currency sellers and the 'mediators', banks and cashiers, aiming for hard currency sources from sellers to customers and thus 'planned for hard currency policies'. 
Finished

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On ‎4‎/‎9‎/‎2018 at 8:11 AM, WheresmyRV? said:

Thinking about dumping my rials,looks like their RV isn't going to happen in my lifetime.

I only have eight million so I didn't lose a great amount of money at this time. I will hold on and maybe my gggrand kids can sell them on E-bay as souvinears.

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  • yota691 changed the title to Central Bank of Iran: We can not provide hard currency
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