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Iran to delete 4 zeroes from the national currency

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3 minutes ago, Dinarrock said:

I agree With you Laid Back!

Thanks for your input Dinarrock 👍🏼

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The article sounds like they have not begun the printing of the new toman as of yet. That is not just expensive but a lengthy process.  About 10 years ago, we had a member here, Dinar Dana, who was a currency consultant and happened to work for DeLaRue. She explained the process of printing currency, and she referred to it as "a scientific process" and said it would have taken about 1.5 years to print all of the new Iraqi currency. It took 7 each 747s to deliver the IQD currency on pallets to Iraq. With electronic banking today the amount of currency reqired would not be as great. But printing currency still takes a while. It's not a trip to Kinko's.

Edited by Carrello
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1 hour ago, Carrello said:

The article sounds like they have not begun the printing of the new toman as of yet. That is not just expensive but a lengthy process.  About 10 years ago, we had a member here, Dinar Dana, who was a currency consultant and happened to work for DeLaRue. She explained the process of printing currency, and she referred to it as "a scientific process" and said it would have taken about 1.5 years to print all of the new Iraqi currency. It took 7 each 747s to deliver the IQD currency on pallets to Iraq. With electronic banking today the amount of currency reqired would not be as great. But printing currency still takes a while. It's not a trip to Kinko's.

Carrello, I agree with your comment,

Replacing a country currency is a lengthy and expensive process. 

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IRAN TO REDENOMINATE RIAL IN BID TO CURB INFLATION.

 

Iran is to remove three zeros from its currency in a huge redenomination aimed at combating rising inflation.

 

The figure was published by Irna, the official news agency. The agency also cited Shamseddin Hosseini, the economic affairs and finance minister, as saying Iran aimed to push ahead with devaluing the Iranian rial over the next year.

Currently valued at more than 10,000 rials to the dollar, the Iranian currency has declined in recent years as the country's problems have deepened.

"This shows the dire straits Iran's economy is in," said John Sfakianakis, the chief economist at Banque Saudi Fransi. "I don't think it will help and, if anything, will fuel [problems] further in the medium term."

Past government attempts to steeply redenominate currencies have achieved little success. Zimbabwe's move in July 2008 to cut 10 zeros off its currency failed to arrest hyperinflation.

Plans to wean the Iranian economy off cheap food and energy are contributing to pushing up consumer price inflation. Officials are trying to remove subsidies that have been used to hold down the cost of basic staples.

Inflation edged to 11.6 per cent in February according to official estimates. Many consumers believe real inflation may be much higher. Iran's economy is hurting from tough international sanctions designed to stifle its trade and oil and gas industries. The UN and the EU tightened restrictions against the country last year in a bid to stop it enriching uranium because of fears it is secretly making nuclear weapons.

The currency dropped by about 20 per cent against the dollar in about a week last September. The sharp dip led some analysts to speculate authorities were seeking to devalue the rial by withholding foreign currencies from the market.

The country's central bank has operated a floating system against the dollar for the past decade to try to prevent the currency from falling to an unacceptable level.

The government of Mahmoud Ahmadinejad, the president,insists international sanctions have had no impact on the economy.

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2 hours ago, Carrello said:

The article sounds like they have not begun the printing of the new toman as of yet. That is not just expensive but a lengthy process.  About 10 years ago, we had a member here, Dinar Dana, who was a currency consultant and happened to work for DeLaRue. She explained the process of printing currency, and she referred to it as "a scientific process" and said it would have taken about 1.5 years to print all of the new Iraqi currency. It took 7 each 747s to deliver the IQD currency on pallets to Iraq. With electronic banking today the amount of currency reqired would not be as great. But printing currency still takes a while. It's not a trip to Kinko's.

 

Uh oh!  Here comes the one-world, digital currency for all.  I see it coming in the not-to-distant future.

"The New World Order" per George Bush.

"A Level Playing Field" per Donald Trump.

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16 hours ago, Laid Back said:

IRAN TO REDENOMINATE RIAL IN BID TO CURB INFLATION.

 

Iran is to remove three zeros from its currency in a huge redenomination aimed at combating rising inflation.

 

The figure was published by Irna, the official news agency. The agency also cited Shamseddin Hosseini, the economic affairs and finance minister, as saying Iran aimed to push ahead with devaluing the Iranian rial over the next year.

Currently valued at more than 10,000 rials to the dollar, the Iranian currency has declined in recent years as the country's problems have deepened.

"This shows the dire straits Iran's economy is in," said John Sfakianakis, the chief economist at Banque Saudi Fransi. "I don't think it will help and, if anything, will fuel [problems] further in the medium term."

Past government attempts to steeply redenominate currencies have achieved little success. Zimbabwe's move in July 2008 to cut 10 zeros off its currency failed to arrest hyperinflation.

Plans to wean the Iranian economy off cheap food and energy are contributing to pushing up consumer price inflation. Officials are trying to remove subsidies that have been used to hold down the cost of basic staples.

Inflation edged to 11.6 per cent in February according to official estimates. Many consumers believe real inflation may be much higher. Iran's economy is hurting from tough international sanctions designed to stifle its trade and oil and gas industries. The UN and the EU tightened restrictions against the country last year in a bid to stop it enriching uranium because of fears it is secretly making nuclear weapons.

The currency dropped by about 20 per cent against the dollar in about a week last September. The sharp dip led some analysts to speculate authorities were seeking to devalue the rial by withholding foreign currencies from the market.

The country's central bank has operated a floating system against the dollar for the past decade to try to prevent the currency from falling to an unacceptable level.

The government of Mahmoud Ahmadinejad, the president,insists international sanctions have had no impact on the economy.

 

Mahmoud Ahmadinejad is Alamos the one that said this “It is planned to remove zeros off currency and make the rial value real," Iran's government website quoted Ahmadinejad as saying. "The value of rial, under the law, is calculated on the basis of the price of gold. For some reason, the rial has been devaluated and we have to return its value to the one existing in the law."

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6 hours ago, screwball said:

 

Mahmoud Ahmadinejad is Alamos the one that said this “It is planned to remove zeros off currency and make the rial value real," Iran's government website quoted Ahmadinejad as saying. "The value of rial, under the law, is calculated on the basis of the price of gold. For some reason, the rial has been devaluated and we have to return its value to the one existing in the law."

I wish you Good luck in your investment screwball, 

I still believe the Iranian rial is going to RD.

- Economic sanctions 

- hyperinflation problems

- changing the name of currency 

- replacing currency for a new one

 

 

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Why All the Misdirection ?

Iran Central bank to remove 3 Zeros ....Or..4 Zeros ? Its difficult to not think They Are Hiding Something...

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The head of the central bank of the mullahs regime: the futility of deleting zeros from the Iranian national currency     8/10/2019

 

عبداÙÙاصر ÙÙت٠Free Membership

 


Referring to the critical situation in the regime, Abdel Nasser Hamti, head of the central bank of the mullahs, said in an interview with the fifth channel of the regime's television: "I have never said that (the circumstances) are favorable." Our mechanisms are limited. Our abilities are limited, the circumstances and everything we inherit, there are many problems ...

 

This economic war has risen and become a difficult dilemma; wherever we go we find that the Americans have preceded us and worked there. Even after we go, they follow us so we don't do anything. I and my colleagues go to Iraq , Turkey, Korea, India, Russia and China, go where we have trade and financial exchanges, discuss with them and satisfy them. In fact the pressure on them is very severe. They exert maximum pressure.

 

"A year ago, I can really say that I could not sleep at night in the first six months because of the pressure on us to control the situation." Citizens know that what happened in the country's economic and political scenes in the middle of last summer. At 2:30 after midnight I woke up and I was thinking what to do. There is tremendous psychological pressure on us.

 

He pointed to the futility of deleting the four zeros from the national currency, saying: I see questions raised by friends at times, they say that the deletion of zeros has no impact on economic growth and does not affect inflation and has no impact on the banking structure and others, we know that, did we say that It has an effect?

 

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Soon .. Iran launches a new foreign exchange market

July 27 2019

 

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Iran's central bank plans to launch a new foreign exchange market around the Muslim holiday of Eid al-Adha on August 12.

 

Governor of the Central Bank of Iran Abdul Nasser Hemti, in a meeting Saturday with the Executive Director of the new market known as the "multiple", expressed the hope to develop a realistic rate of exchange rate of foreign currencies against the riyal and achieve transparency in the presentation of foreign currency notes, with the introduction of this market.

 

The new market to be launched is a private company comprising the Money Exchange Association, the Union of State Banks, the Association of Private Banks and the shareholders of the parallel market.

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Iran circumvents the fall of the riyal in a new foreign exchange market

July 28, 2019

Violent volatility in the Iranian foreign exchange market

 

TEHRAN (Reuters) - Iran's central bank plans to launch a new foreign exchange market in early August, a move the Tehran government claims will curb large fluctuations in foreign exchange rates in the official market recently.

 

The official IRNA news agency reported on Sunday, citing Governor of the Central Bank of Iran, Nasser Hemmati, that the prospective market would be known as "multi-market or formed", and its role will be regulatory and not specific to the foreign exchange rate, he said.

 

 Government corruption in Iran brutal .. disappearance of one billion euros allocated for import


He added, "Hamti" in press statements on the sidelines of a meeting with the new head of the foreign exchange market, that the aim of crystallizing prices described as "realistic" belong to foreign exchange against the Iranian rial.

 

Iran's new foreign exchange market, due to start by August 12, will bring transparency to the foreign exchange offer, he said.

 

The new market will include a private company comprising the Money Exchange Association, the Union of Iranian State Banks, the Association of Private Banks, and the shareholders of the parallel market on the Iranian Stock Exchange under the supervision of the Central Bank in order to develop a real foreign exchange rate.

 

These entities will be the main mechanism for the activities of the shaping currency market, where financial transactions are scheduled to take place daily in electronic form, according to the BBC.

 

The rise in the foreign exchange rate inside Iran has led to a severe financial crisis in the liquidity of the commercial and industrial units in the country, amid many criticism by Iranian analysts following government interventions in foreign exchange rates.

 

The new foreign exchange market is expected to be a place for large banking transactions only among Iranian domestic banks, with several other foreign exchange markets in Iran, such as parallel (banking) and black (currency brokers), to be used by private individuals to secure their foreign currency needs as usual, according to the report. For BBC.

 

According to reports by the Central Bank of Iran, multiple or formed FX market interactions are supposed to determine real foreign exchange rates based on the supply and demand mechanism.

 

The Iranian government, which blames foreign exchange brokers for causing market volatility, hopes the dollar will approach its real value in this new market.

 

It is not expected that this market will determine the prices of foreign currencies, but will be responsible for regulating them in the light of transactions between real speculators of foreign exchange such as government banks and banking shops approved, during which they appear naturally.


Iran's foreign exchange market, after the collapse of the local currency since last year, has turned into a backyard for speculation and corruption by government officials under a Tehran government decision to allocate cash packages at the government rate.


In recent months, the Iranian government has been offering local importers foreign currencies at a lower exchange rate than the free-market trader, which amounted to about 130,000 Iranian rials to the dollar in early July.


The Iranian riyal is slightly stable against the dollar, currently at 120,000 riyals per dollar, according to the Bonpast platform, which specializes in monitoring the parallel foreign exchange market in Iran.


These cash quotas are granted on preconditions. Iranian importers and exporters are obliged to purchase and transport pre-approved goods to Iran, as well as to return the proceeds from the sale of their transactions to foreign buyers.


Local news reports have recently revealed that government employees have seized an estimated 2 million euros at the government-backed exchange rate under the pretext of buying heart stents, but they fled the money out of Iran.


A month ago, as Iran effectively entered the full oil embargo, Tehran's Parliamentary Research Center said it was likely that there would be more financial scarcity inside the country.


Tehran relies primarily on foreign exchange earnings for its crude oil and gas condensate.


With the share of Iranian oil exports falling to about 250 thousand barrels of oil per day at the moment, due to the intensification of US pressure, a new parliamentary report that the country is on the verge of a severe shortage of liquidity as long as economic policies remain unchanged.

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6 hours ago, blueskyline said:

Why All the Misdirection ?

Iran Central bank to remove 3 Zeros ....Or..4 Zeros ? Its difficult to not think They Are Hiding Something...

Difficult for some...

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7 hours ago, blueskyline said:

Why All the Misdirection ?

Iran Central bank to remove 3 Zeros ....Or..4 Zeros ? Its difficult to not think They Are Hiding Something...

It will be one zero soon...well that’s what cabinet apparently approved last year or year before...majlis has the final say and guardian council...it will be four

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3 minutes ago, screwball said:

It will be one zero soon...well that’s what cabinet apparently approved last year or year before...majlis has the final say and guardian council...it will be four

 

I remember something along those lines as well SB. Do you think we may see something this Monday with the start of the new Foreign Exchange taking place ?

 

  pp

Edited by pokerplayer
spelling, what else ? lol
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2 hours ago, pokerplayer said:

 

I remember something along those lines as well SB. Do you think we may see something this Monday with the start of the new Foreign Exchange taking place ?

 

  pp

we can only hope

 

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IMF

Slowest GDP growth, 2019

 

Venezuela: -25%

Iran: -6%

Zimbabwe: -5.2%

Nicaragua: -5%

Equatorial Guinea: -4%

Turkey: -2.5%

Sudan: -2.3%

Argentina: -1.2%

Puerto Rico: -1.1%

Ecuador: -0.5% Italy: 0.1%

Angola: 0.4%

Burundi: 0.4%

Liberia: 0.4%

Germany: 0.8%

Japan: 1%

 

(IMF)

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5 hours ago, pokerplayer said:

 

I remember something along those lines as well SB. Do you think we may see something this Monday with the start of the new Foreign Exchange taking place ?

 

  pp

Yeah not sure, I thought I read that it had been post poned...I think Iran and Iraq will go same time...i was hoping Iran would go first so I could then exchange and double dip on Iraqi shares big time...I am waiting patiently and will travel if I have too!

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1 hour ago, Carrello said:

IMF

Slowest GDP growth, 2019

 

Venezuela: -25%

Iran: -6%

Zimbabwe: -5.2%

Nicaragua: -5%

Equatorial Guinea: -4%

Turkey: -2.5%

Sudan: -2.3%

Argentina: -1.2%

Puerto Rico: -1.1%

Ecuador: -0.5% Italy: 0.1%

Angola: 0.4%

Burundi: 0.4%

Liberia: 0.4%

Germany: 0.8%

Japan: 1%

 

(IMF)

means nothing  it’s like inflation 

which is false..real inflation is around 9%...they have the gold and currency reserves and oil and can carry a rate of $2.00 plus...

Edited by screwball
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2 minutes ago, screwball said:

Yeah not sure, I thought I read that it had been post poned...I think Iran and Iraq will go same time...i was hoping Iran would go first so I could then exchange and double dip on Iraqi shares big time...I am waiting patiently and will travel if I have too!

 

It reminds me of a snowball fight as a kid. One snowball got lobbed up into the air, then the line drive nailed me straight into my chest while I was watching the lobbed snowball. 

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1 hour ago, screwball said:

Yeah not sure, I thought I read that it had been post poned...I think Iran and Iraq will go same time...i was hoping Iran would go first so I could then exchange and double dip on Iraqi shares big time...I am waiting patiently and will travel if I have 

It was supposed to start As per earlier official announcements and reports in the Tribune and other local media outlets, the regulated market was scheduled to start operations on July 2. That date was postponed .they were waiting on opportune time....Iran's Regulated Forex Market Waiting for the Opportune Time...now the date is set for august 12 which will coincides with the holiday ...the regulated foreign exchange market will be launched on August 12 to coincide with the annual feast of Eid al-Adha (Eid- e- Qorban in Iran)

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6 hours ago, screwball said:

Yeah not sure, I thought I read that it had been post poned...I think Iran and Iraq will go same time...i was hoping Iran would go first so I could then exchange and double dip on Iraqi shares big time...I am waiting patiently and will travel if I have too!

If this pops at .23 it may put a run on the Dinar. It could force their hand to do something. 

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