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Iran to delete 4 zeroes from the national currency

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3 minutes ago, ChuckFinley said:

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

We will soon enough I suppose 

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They have been talking about deleting zeros for well over 10 years I would say that sanctions are working forcing them to rejoining the international monetary system

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1 hour ago, ChuckFinley said:

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

 

That’s a really good point Chuck! 

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8 hours ago, screwball said:

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...

 

GDP is part of economic conditions which indicate the health of an economy, among other things. Determing exchange rates is not just currency reserves or what something someone thinks it should be. Mullahs don't figure out exchange rates on a whim or whether one or four zeroes will be dropped from the exchange rate of a whole fricking country! Determinging  rates is an analytical, scientific process. It is not done willy nilly.

 

What Are Economic Conditions?

Economic conditions refer to the present state of the economy in a country or region. These conditions change over time along with the economic and business cycles, as an economy goes through periods of expansion and contraction. Economic conditions are considered to be sound or positive when an economy is expanding 

Understanding Economic Conditions

A country's economic conditions are influenced by numerous macroeconomic and microeconomic factors, including monetary and fiscal policy, the state of the global economy, unemployment levels, productivity, exchange rates, inflation and many others.

 

Economic data is released on a regular basis, generally weekly or monthly and sometimes quarterly. Some economic indicators like the unemployment rate and GDP growth rate are monitored closely by market participants, as they help to make an assessment of economic conditions and potential changes in them. A plethora of economic indicators can be used to define the state of the economy or economic conditions, including the unemployment rate, levels of current account and budget surpluses or deficits, GDP growth rates and inflation rates.

 

These factors apply world wide, not only Canada:

Factors Affecting the Value of the Canadian Dollar

Economic theory and empirical evidence have identified factors that, in isolation from one another, have predictable effects on exchange rates. However, predicting exchange rate movements is difficult because these factors interact at the same time. Often, the reasons underlying recent movements are evident only in hindsight.

 

The main factors known to influence the value of the Canadian dollar are:

  • Interest rates: Relatively higher interest rates in Canada increase foreign investors’ demand for Canadian dollar-denominated securities. However, the rate of return of foreign investors is dependent on the expected future performance of the Canadian dollar. If foreign investors anticipate a decline in the value of the Canadian dollar, they demand a higher interest rate on Canadian dollar securities.
  • Commodity prices: The value of the Canadian dollar is correlated to the strength of world commodity prices. Commodities represent a larger share of exports in Canada compared to the United States and many other countries. When commodity prices rise, Canada’s terms of trade improve because its goods have become relatively more valuable. Since Canada’s effective purchasing power is higher, this movement is usually reflected in a higher exchange rate. The opposite also holds: weaker commodity prices can translate into a weaker Canadian dollar.
  • Inflation rates: Inflation is the rate at which general price levels rise over time. If inflation in Canada were to exceed foreign inflation rates, this would reduce the purchasing power of the Canadian dollar relative to foreign currencies. That reduction would be reflected in a relative decline in the value of the Canadian dollar. The opposite is also true. Sustained, relatively low inflation in Canada has a positive influence on the exchange rate.
  • International trade of goods and services: When a country has a trade surplus, exports exceed imports, putting upward pressure on the exchange rate (the demand for the currency exceeds the supply). When a country has a trade deficit, imports exceed exports, putting downward pressure on the exchange rate (the supply for the currency exceeds the demand).
  • Foreign investment and debt payments: Inflows of foreign investment in Canada increase the foreign demand for Canadian dollars, pushing the exchange rate up. Direct investment made by Canadians abroad has the opposite effect. Debt payments made to foreigners push the exchange rate down.
  • Productivity: A country’s productivity – the amount of output that can be produced with a given level of inputs – can be a factor in the determination of the exchange rate through its effect on relative prices and international competitiveness. For example, if productivity in Canada were to grow faster than in the United States, the prices of Canadian goods would become more competitive and, over time, Canadian output and exports would increase, leading to greater demand for Canadian dollars.
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The new toman will be divided into 100 rials - a tenfold redenomination of the current toman which is divided into 10 rials.  

 

Redenomination is the process of changing the value of a currency, typically due to hyperinflation or when a new currency is adopted.

 

Go economic sanctions 

Go hyperinflation 

Go redenomination

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"Currency change.". Tehran's ploy to escape economic collapse. The Central Bank of Iran proposes to remove 4 zeros from the national currency. The Council of Ministers approves

Thursday, August 8, 2019

اÙبÙابة ÙÙÙز

 

The Iranian Cabinet approved at its meeting on Wednesday, July 31, the proposal of the Central Bank of Iran, which he submitted in January, to delete four zeros of the national currency (rial) and change the currency from the rial to to man, so that the one toman equals 10 thousand riyals, after It was only worth 10 riyals. According to official statements, dealing in Toman will begin after two years and cancel the trading in rials except between Iranian banks, which will continue to deal in rials.

 

This step comes as an attempt to "beautify" the economic reality of the state in the face of economic bottlenecks that became worsening after the Withdrawal of the United States in May 2018 from the nuclear agreement of 2015, and the imposition of more economic sanctions on it in September 2018, including many sectors, the most important sector Oil and energy.

 

«تغÙÙر اÙعÙÙة»..

 

Previous attempts
This was not the first time that the Iranian government considered removing some zeros from its national currency, as this step was considered in 1994, when inflation in the country rose to nearly 49% after it was a single figure (below 10%), then the second thought came in the deletion of some zeros from the currency in Former Iranian President Mahmoud Ahmadinejad announced in 2010 the intention to remove three zeros from the currency, but it was a step that did not go far beyond implementation.


In December 2016, the government of President Rouhani agreed to remove zero from the national currency, but this decision was not implemented, due to the disapproval of the parliament, which saw it as a weak step and will not affect the economic situation of the state, but this time it seems that the parliament will approve the government's decision to remove four zeros of the currency did not Try to ease the burden of inflation and facilitate transactions in the markets.

 

«تغÙÙر اÙعÙÙة»..

 


Why is Iran resorting to currency change at the moment?
Some countries rely on economic tricks in the face of the decline in the purchasing value of their currency, either by removing some zeros from the value of their currency or changing the currency completely, which Iran did this time. It can be said that Tehran resorted to this step to avoid many of the problems that have become prevalent in the market today, which is the continued collapse of the currency against the U.S. dollar, since the withdrawal of the United States from the nuclear agreement in May 2018, and the imposition of economic sanctions on sectors Iranian oil, banks and transport, the Iranian currency became reeling against the U.S. dollar, where the Iranian rial at the end of 2018 lost more than 60% of its value, and the U.S. dollar in September 2018 reached the free market nearly 190 thousand riyals, and then decreased to now it is about 140 1,000 riyals (approximately 14,000 tomans).


Iran is also seeking to facilitate the process of payments and reduce the cost of printing, it is enough to imagine that a citizen carries thousands of coins of riyals in order to buy some vegetables from the store, where the price per kilo of meat for example reaches 100 thousand riyals (million riyals), which is a very large figure. Moreover, Tehran costs a lot to print currencies, according to the official statements of the governor of the central bank Abdel Nasser Hamti, the cost of printing a 500 Toman class banknote is 400 tomans (i.e. the cost of printing a single currency is approximately 80% of its value).


Perhaps the most important motive behind this move is to try to control the spectre of high inflation, with the Withdrawal of the United States from the nuclear deal and the imposition of sanctions, Iran became unable to export oil as before, which led to great pressure on the Iranian economy, which led to the devaluation of the currency, According to data from the Central Bank of Iran, the supply of cash in the markets increases by 20-30% per annum, the money supply in October 2018 reached approximately 17 cudrilion riyals (million billion), a very large figure. Inflation has risen from nearly 10% in 2017 to 18% after the U.S. withdrawal from the nuclear deal in mid-2018, and although the Central Bank of Iran has stopped declaring inflation rates, it is currently estimated at about 50%.


Besides Tehran's attempt to control currency and black market counterfeiting, countries that suffer from currency counterfeiting problems often resort to the exchange rate of the currency on the black market, to change its currency, because the worsening of the problem always needs radical solutions, and this is what Iran has resorted to, after If you fail to try to control currency counterfeiting and the existence of more than one exchange rate, although the official price of the dollar against the rial amounts to (42 thousand riyals to the dollar), it is on the black market up to (140 thousand riyals to the dollar). In addition, a currency change would reduce the phenomenon of money-laundering away from state banks.


There is no doubt that the change of currency leaves a good psychological effect on the general public, after the citizen had to carry thousands of coins to go to the market, will have to carry a much lower amount, the deletion of the four zeros will make the price of the kilo of meat mentioned above (100 thousand toman) to (10 toman), and will become the price of Free exchange in the market (1.4 toman against the dollar) from (14 thousand toman), as well as the change of currency from riyal to toman will lead to the consolidation of official accounts that were conducted in rials in the past with the activity of consumers and producers in the market that was done in Toman.

 

«تغÙÙر اÙعÙÙة»..

 

The future of the new currency
Although the Iranian government, led by President Hassan Rouhani, has agreed to change the currency to Toman, this decision still needs the approval of parliament and the Guardian Council, and therefore there is still a lot of time to begin the implementation of this step, especially with the announcement of the Governor of the Central Bank Iran, the implementation of this step requires more meetings and consultations and a plan to withdraw the old currency and print the new currency, which means that it will take at least two years to start introducing the new currency (Toman).


It can be said that the introduction of a new currency in any market suffering the deterioration of the currency and its depreciation, it is true that it affects the psychological morale of citizens well, but this effect is "limited and temporal", i.e. it is a short-term effect, disappears with time, and the citizen discovers that the value of the purchasing currency is still as she.


The main key to the success of the process of changing the currency or removing zeros of its value in the extent of achieving a real change in the economic structure of the state, if there is no clear economic plan synchronized with the change of currency, the economic situation will deteriorate further, for example, what happened in the Turkish case, Turkey in 2005 deleted six zeros of its currency (after the 1 million Turkish lira was equivalent to one U.S. dollar, the Turkish lira is equal to one dollar as well), and it is true that this step has been relatively successful, as the currency has depreciated again in 2018 and so far, especially with The lack of real and institutional reform (particularly the crisis of the dismissal of the governor of the central bank and the intervention of President Erdogan in the bank's monetary policy).


We see this also in Venezuela, where it deleted five zeros from its national currency (Bolivar) in July 2018, in an attempt to ease the crisis of the collapse of the economy with the fall in oil prices since 2014, where oil production represents 96% of the national income of the state, although socialist President Nicolas Maduro stated that this The move will fix the faltering economy, but we now see that conditions are getting worse, with inflation in the country reaching nearly one million percent, for example, the price of a parsley pack in Venezuela is close to 1 million bolivars.


Therefore, in the Case of Iran it is expected that this step will be only "cosmetic", especially since so far no clear economic plan has been announced in the context of the introduction of the change of currency, which calls for the expectation that the Iranian economy will continue to falter in the pace for a long time to come, due to three The index finger is clear.


First: Continued U.S. economic sanctions on Iran, which means a significant tightening of the noose on all attempts at Iran's economic expansion, as well as the fact that U.S. President Donald Trump is not only trying to "trim the claws", but "remove the claws" of Iran, For this, he is expected to stop imposing more sanctions on Tehran, either Tehran will bow to the U.S. decision or be completely dropped, and Iran may have a chance to get rid of President Trump with the upcoming U.S. presidential election in 2020, but it seems to be a slim chance because so far it has not appeared A strong contender from the Democratic Party, it seems that Trump will stay for another four years.


Second: the lack of independence of the Central Bank of Iran, so that it can do its job in achieving the economic stability of the state, and create economic reforms for the troubled banking sector, as the political crises on Iran, the central bank is now bowing to political interventions by the government, without attempting to take "steady and independent" steps towards achieving the economic stability of the country by targeting inflation indicators, interest rates and exchange rate.


Third: The constant pursuit by the Iranian leadership to create more crises in the region and the world, where Iran behaves from the point of view of the "single loser" or loser who has nothing else to lose, it does not hesitate to export crises to the region and the world, it is sabotage operations in The Arab Gulf to the detention of oil tankers to announce the lifting of the ceiling of uranium enrichment, all these crises are creating a further economic blockade on them, as this is losing their trading partners.


Thus, in the end, in light of previous indicators, it can be said that the Iranian economy will not come out of the bottleneck in the near term, and this is confirmed by what was stated in the latest IMF report issued last April «Prospects for the world economy» that the Iranian economy, as a result of the U.S. sanctions It is shrinking (growing at a negative rate) of 3.6% at the end of 2018, then 4.5% in early 2019, and the IMF expects the Iranian economy to continue to grow at a negative rate of 6% by the end of 2019.

Edited by DWS112
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54 minutes ago, DWS112 said:

"Currency change.". Tehran's ploy to escape economic collapse. The Central Bank of Iran proposes to remove 4 zeros from the national currency. The Council of Ministers approves

Thursday, August 8, 2019

اÙبÙابة ÙÙÙز

 

The Iranian Cabinet approved at its meeting on Wednesday, July 31, the proposal of the Central Bank of Iran, which he submitted in January, to delete four zeros of the national currency (rial) and change the currency from the rial to to man, so that the one toman equals 10 thousand riyals, after It was only worth 10 riyals. According to official statements, dealing in Toman will begin after two years and cancel the trading in rials except between Iranian banks, which will continue to deal in rials.

 

This step comes as an attempt to "beautify" the economic reality of the state in the face of economic bottlenecks that became worsening after the Withdrawal of the United States in May 2018 from the nuclear agreement of 2015, and the imposition of more economic sanctions on it in September 2018, including many sectors, the most important sector Oil and energy.

 

«تغÙÙر اÙعÙÙة»..

 

Previous attempts
This was not the first time that the Iranian government considered removing some zeros from its national currency, as this step was considered in 1994, when inflation in the country rose to nearly 49% after it was a single figure (below 10%), then the second thought came in the deletion of some zeros from the currency in Former Iranian President Mahmoud Ahmadinejad announced in 2010 the intention to remove three zeros from the currency, but it was a step that did not go far beyond implementation.


In December 2016, the government of President Rouhani agreed to remove zero from the national currency, but this decision was not implemented, due to the disapproval of the parliament, which saw it as a weak step and will not affect the economic situation of the state, but this time it seems that the parliament will approve the government's decision to remove four zeros of the currency did not Try to ease the burden of inflation and facilitate transactions in the markets.

 

«تغÙÙر اÙعÙÙة»..

 


Why is Iran resorting to currency change at the moment?
Some countries rely on economic tricks in the face of the decline in the purchasing value of their currency, either by removing some zeros from the value of their currency or changing the currency completely, which Iran did this time. It can be said that Tehran resorted to this step to avoid many of the problems that have become prevalent in the market today, which is the continued collapse of the currency against the U.S. dollar, since the withdrawal of the United States from the nuclear agreement in May 2018, and the imposition of economic sanctions on sectors Iranian oil, banks and transport, the Iranian currency became reeling against the U.S. dollar, where the Iranian rial at the end of 2018 lost more than 60% of its value, and the U.S. dollar in September 2018 reached the free market nearly 190 thousand riyals, and then decreased to now it is about 140 1,000 riyals (approximately 14,000 tomans).


Iran is also seeking to facilitate the process of payments and reduce the cost of printing, it is enough to imagine that a citizen carries thousands of coins of riyals in order to buy some vegetables from the store, where the price per kilo of meat for example reaches 100 thousand riyals (million riyals), which is a very large figure. Moreover, Tehran costs a lot to print currencies, according to the official statements of the governor of the central bank Abdel Nasser Hamti, the cost of printing a 500 Toman class banknote is 400 tomans (i.e. the cost of printing a single currency is approximately 80% of its value).


Perhaps the most important motive behind this move is to try to control the spectre of high inflation, with the Withdrawal of the United States from the nuclear deal and the imposition of sanctions, Iran became unable to export oil as before, which led to great pressure on the Iranian economy, which led to the devaluation of the currency, According to data from the Central Bank of Iran, the supply of cash in the markets increases by 20-30% per annum, the money supply in October 2018 reached approximately 17 cudrilion riyals (million billion), a very large figure. Inflation has risen from nearly 10% in 2017 to 18% after the U.S. withdrawal from the nuclear deal in mid-2018, and although the Central Bank of Iran has stopped declaring inflation rates, it is currently estimated at about 50%.


Besides Tehran's attempt to control currency and black market counterfeiting, countries that suffer from currency counterfeiting problems often resort to the exchange rate of the currency on the black market, to change its currency, because the worsening of the problem always needs radical solutions, and this is what Iran has resorted to, after If you fail to try to control currency counterfeiting and the existence of more than one exchange rate, although the official price of the dollar against the rial amounts to (42 thousand riyals to the dollar), it is on the black market up to (140 thousand riyals to the dollar). In addition, a currency change would reduce the phenomenon of money-laundering away from state banks.


There is no doubt that the change of currency leaves a good psychological effect on the general public, after the citizen had to carry thousands of coins to go to the market, will have to carry a much lower amount, the deletion of the four zeros will make the price of the kilo of meat mentioned above (100 thousand toman) to (10 toman), and will become the price of Free exchange in the market (1.4 toman against the dollar) from (14 thousand toman), as well as the change of currency from riyal to toman will lead to the consolidation of official accounts that were conducted in rials in the past with the activity of consumers and producers in the market that was done in Toman.

 

«تغÙÙر اÙعÙÙة»..

 

The future of the new currency
Although the Iranian government, led by President Hassan Rouhani, has agreed to change the currency to Toman, this decision still needs the approval of parliament and the Guardian Council, and therefore there is still a lot of time to begin the implementation of this step, especially with the announcement of the Governor of the Central Bank Iran, the implementation of this step requires more meetings and consultations and a plan to withdraw the old currency and print the new currency, which means that it will take at least two years to start introducing the new currency (Toman).


It can be said that the introduction of a new currency in any market suffering the deterioration of the currency and its depreciation, it is true that it affects the psychological morale of citizens well, but this effect is "limited and temporal", i.e. it is a short-term effect, disappears with time, and the citizen discovers that the value of the purchasing currency is still as she.


The main key to the success of the process of changing the currency or removing zeros of its value in the extent of achieving a real change in the economic structure of the state, if there is no clear economic plan synchronized with the change of currency, the economic situation will deteriorate further, for example, what happened in the Turkish case, Turkey in 2005 deleted six zeros of its currency (after the 1 million Turkish lira was equivalent to one U.S. dollar, the Turkish lira is equal to one dollar as well), and it is true that this step has been relatively successful, as the currency has depreciated again in 2018 and so far, especially with The lack of real and institutional reform (particularly the crisis of the dismissal of the governor of the central bank and the intervention of President Erdogan in the bank's monetary policy).


We see this also in Venezuela, where it deleted five zeros from its national currency (Bolivar) in July 2018, in an attempt to ease the crisis of the collapse of the economy with the fall in oil prices since 2014, where oil production represents 96% of the national income of the state, although socialist President Nicolas Maduro stated that this The move will fix the faltering economy, but we now see that conditions are getting worse, with inflation in the country reaching nearly one million percent, for example, the price of a parsley pack in Venezuela is close to 1 million bolivars.


Therefore, in the Case of Iran it is expected that this step will be only "cosmetic", especially since so far no clear economic plan has been announced in the context of the introduction of the change of currency, which calls for the expectation that the Iranian economy will continue to falter in the pace for a long time to come, due to three The index finger is clear.


First: Continued U.S. economic sanctions on Iran, which means a significant tightening of the noose on all attempts at Iran's economic expansion, as well as the fact that U.S. President Donald Trump is not only trying to "trim the claws", but "remove the claws" of Iran, For this, he is expected to stop imposing more sanctions on Tehran, either Tehran will bow to the U.S. decision or be completely dropped, and Iran may have a chance to get rid of President Trump with the upcoming U.S. presidential election in 2020, but it seems to be a slim chance because so far it has not appeared A strong contender from the Democratic Party, it seems that Trump will stay for another four years.


Second: the lack of independence of the Central Bank of Iran, so that it can do its job in achieving the economic stability of the state, and create economic reforms for the troubled banking sector, as the political crises on Iran, the central bank is now bowing to political interventions by the government, without attempting to take "steady and independent" steps towards achieving the economic stability of the country by targeting inflation indicators, interest rates and exchange rate.


Third: The constant pursuit by the Iranian leadership to create more crises in the region and the world, where Iran behaves from the point of view of the "single loser" or loser who has nothing else to lose, it does not hesitate to export crises to the region and the world, it is sabotage operations in The Arab Gulf to the detention of oil tankers to announce the lifting of the ceiling of uranium enrichment, all these crises are creating a further economic blockade on them, as this is losing their trading partners.


Thus, in the end, in light of previous indicators, it can be said that the Iranian economy will not come out of the bottleneck in the near term, and this is confirmed by what was stated in the latest IMF report issued last April «Prospects for the world economy» that the Iranian economy, as a result of the U.S. sanctions It is shrinking (growing at a negative rate) of 3.6% at the end of 2018, then 4.5% in early 2019, and the IMF expects the Iranian economy to continue to grow at a negative rate of 6% by the end of 2019.

Iran it is expected that this step will be only "cosmetic".. An even exchange. 

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4 hours ago, jg1 said:

Iran it is expected that this step will be only "cosmetic".. An even exchange. 

I'd say "  DISPAIR "

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8 hours ago, Carrello said:

 

GDP is part of economic conditions which indicate the health of an economy, among other things. Determing exchange rates is not just currency reserves or what something someone thinks it should be. Mullahs don't figure out exchange rates on a whim or whether one or four zeroes will be dropped from the exchange rate of a whole fricking country! Determinging  rates is an analytical, scientific process. It is not done willy nilly.

 

What Are Economic Conditions?

Economic conditions refer to the present state of the economy in a country or region. These conditions change over time along with the economic and business cycles, as an economy goes through periods of expansion and contraction. Economic conditions are considered to be sound or positive when an economy is expanding 

Understanding Economic Conditions

A country's economic conditions are influenced by numerous macroeconomic and microeconomic factors, including monetary and fiscal policy, the state of the global economy, unemployment levels, productivity, exchange rates, inflation and many others.

 

Economic data is released on a regular basis, generally weekly or monthly and sometimes quarterly. Some economic indicators like the unemployment rate and GDP growth rate are monitored closely by market participants, as they help to make an assessment of economic conditions and potential changes in them. A plethora of economic indicators can be used to define the state of the economy or economic conditions, including the unemployment rate, levels of current account and budget surpluses or deficits, GDP growth rates and inflation rates.

 

These factors apply world wide, not only Canada:

Factors Affecting the Value of the Canadian Dollar

Economic theory and empirical evidence have identified factors that, in isolation from one another, have predictable effects on exchange rates. However, predicting exchange rate movements is difficult because these factors interact at the same time. Often, the reasons underlying recent movements are evident only in hindsight.

 

The main factors known to influence the value of the Canadian dollar are:

  • Interest rates: Relatively higher interest rates in Canada increase foreign investors’ demand for Canadian dollar-denominated securities. However, the rate of return of foreign investors is dependent on the expected future performance of the Canadian dollar. If foreign investors anticipate a decline in the value of the Canadian dollar, they demand a higher interest rate on Canadian dollar securities.
  • Commodity prices: The value of the Canadian dollar is correlated to the strength of world commodity prices. Commodities represent a larger share of exports in Canada compared to the United States and many other countries. When commodity prices rise, Canada’s terms of trade improve because its goods have become relatively more valuable. Since Canada’s effective purchasing power is higher, this movement is usually reflected in a higher exchange rate. The opposite also holds: weaker commodity prices can translate into a weaker Canadian dollar.
  • Inflation rates: Inflation is the rate at which general price levels rise over time. If inflation in Canada were to exceed foreign inflation rates, this would reduce the purchasing power of the Canadian dollar relative to foreign currencies. That reduction would be reflected in a relative decline in the value of the Canadian dollar. The opposite is also true. Sustained, relatively low inflation in Canada has a positive influence on the exchange rate.
  • International trade of goods and services: When a country has a trade surplus, exports exceed imports, putting upward pressure on the exchange rate (the demand for the currency exceeds the supply). When a country has a trade deficit, imports exceed exports, putting downward pressure on the exchange rate (the supply for the currency exceeds the demand).
  • Foreign investment and debt payments: Inflows of foreign investment in Canada increase the foreign demand for Canadian dollars, pushing the exchange rate up. Direct investment made by Canadians abroad has the opposite effect. Debt payments made to foreigners push the exchange rate down.
  • Productivity: A country’s productivity – the amount of output that can be produced with a given level of inputs – can be a factor in the determination of the exchange rate through its effect on relative prices and international competitiveness. For example, if productivity in Canada were to grow faster than in the United States, the prices of Canadian goods would become more competitive and, over time, Canadian output and exports would increase, leading to greater demand for Canadian dollars.

Disagree...respectfully...fudged figures like exchange rate and inflation 

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Says it all really....The main key to the success of the process of changing the currency or removing zeros of its value in the extent of achieving a real change in the economic structure of the state, if there is no clear economic plan synchronized with the change of currency, the economic situation will deteriorate further,

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2 minutes ago, screwball said:

Disagree...respectfully...fudged figures like exchange rate and inflation 

So are we fudged or is everything looking sugar and sweet for us rial (to)men??

Tomorrow will give us our just desserts...

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Can anyone answer what the change in value with respect to the USD is? 

 

Before/Currently

1 Toman:USD

1 Rial:USD

 

After Zero Removal

1 Toman:USD

1 Rial:USD

 

I can’t figure it out. Perhaps the answer is going to show up in 6 hours when and if the new restructured currency exchange hits the trading market on August 12th.

 

What market is this information found in?

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1 hour ago, screwball said:

Disagree...respectfully...fudged figures like exchange rate and inflation 

 

I don't understand your comment, respectfully. I did not quote any figures.

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11 minutes ago, Carrello said:

 

I don't understand your comment, respectfully. I did not quote any figures.

Talking about Iran’s figures....gdp, inflation and exchange rate...

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1 hour ago, ametad said:

Can anyone answer what the change in value with respect to the USD is? 

 

Before/Currently

1 Toman:USD

1 Rial:USD

 

After Zero Removal

1 Toman:USD

1 Rial:USD

 

I can’t figure it out. Perhaps the answer is going to show up in 6 hours when and if the new restructured currency exchange hits the trading market on August 12th.

 

What market is this information found in?

That’s because your nit suppose to because it doesn’t make sense...

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1 hour ago, miquel said:

So are we fudged or is everything looking sugar and sweet for us rial (to)men??

Tomorrow will give us our just desserts...

Until rate officially changes we wait 

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pleaseeee…...pleaseeeeee…...pleaseeeee RV

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5 hours ago, ametad said:

Can anyone answer what the change in value with respect to the USD is? 

 

Before/Currently

1 Toman:USD

1 Rial:USD

 

After Zero Removal

1 Toman:USD

1 Rial:USD

 

I can’t figure it out. Perhaps the answer is going to show up in 6 hours when and if the new restructured currency exchange hits the trading market on August 12th.

 

What market is this information found in?

 

So far I have deduced that currently the value is at;

 

1 USD : 42,000 Rial

1 USD : 4,200 Toman

 

Working the math in the other direction.

10,000 Rial : 0.238 USD

10,000 Toman : 2.381 USD

 

However, there are reports that the value is as low as 1 USD trading at 110,000 Rial. At 120,000 Rial: 1 USD it  would reduce the value of USD by a third from about 40,000 Rial : 1 USD. 

 

I’m curious about how much gold is in an Iranian Toman Coin. How does this align with the Gold Market??

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19 minutes ago, ametad said:

 

So far I have deduced that currently the value is at;

 

1 USD : 42,000 Rial

1 USD : 4,200 Toman

 

Working the math in the other direction.

10,000 Rial : 0.238 USD

10,000 Toman : 2.381 USD

 

However, there are reports that the value is as low as 1 USD trading at 110,000 Rial. At 120,000 Rial: 1 USD it  would reduce the value of USD by a third from about 40,000 Rial : 1 USD. 

 

I’m curious about how much gold is in an Iranian Toman Coin. How does this align with the Gold Market??

 

Great deductions and Questions. ScrewBall is pretty knowledgable about this. Apparently sometime ago it was said a riel was suppose to be along the same lines as a gram of gold ( could be wrong, will let him ( @screwball  ) explain as he does it better than me.

 

  Sorry not more help

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AT, that is correct...

 

So far I have deduced that currently the value is at;

 

1 USD : 42,000 Rial

1 USD : 4,200 Toman

 

Working the math in the other direction.

10,000 Rial : 0.238 USD

10,000 Toman : 2.381 USD

If, however, the rate is 40,000rials = 1 USD , then the rate would be a little higher on both rials n toman. Cheers

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Hey miamiheat, nothing is happening right now...just discussing the present rate.

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