Another plunge in Iran’s Rial

Another plunge in Iran’s Rial

Thursday, 17 September 2015 10:57  Written by Sanabargh Zahedi  

 


By Dr. Sanabargh Zahedi

In Tehran on Monday, the value of Iran’s official currency, the Rial, took yet another dive, standing at 35000 rials for each U.S. dollar. Two years ago, it stood at 29000 rials to the dollar.

The fall in the currency value is an important indicator of the fragile state of Iran’s economy and illustrates the Rouhani government inability to improve the country’s economic conditions.

The state-run Fars news agency reported that this is the highest value for the dollar in the past two years.

The nuclear deal between Iran’s regime and the six world powers on July 14 resulted in a reduction in the price of foreign currency and gold to some extent, but only a few days later the Rial again lost its value against foreign currencies.

There were expectations that following the nuclear deal the economy would improve but reports indicate that severe stagnation still hurts the economy.

Mohammad Bagher Nobakht, head of the regime’s Management and Planning Organization, recently stated that Iran’s budget deficit has reached 50% for this year.

The director of exports of Iran’s Central Bank has stated that “increase in real demand, increase in delayed payments, plunge in oil prices, increase of trade in unofficial markets, and waning of market excitements” are among the causes for an increase in the value of foreign currencies.

The price of Iranian oil was estimated at $70 a barrel when Hassan Rouhani’s administration set this year’s budget; but oil prices now stand at $40 a barrel.

Nevertheless, analysts of the Iranian economy believe that even without a drop in oil prices, it was unimaginable for Iran’s economy to rebound from bankruptcy. The expenses of the war in Syria and Tehran’s backing of the Houthis in Yemen and the militias affiliated with the Quds Force in Iraq, as well as the billions spent each year on the nuclear weapons projects are burdening the Iranian economy and depriving the country of internal investments.

Most importantly, the entirety of Iran’s economy is suffering from institutionalized corruption and a monopoly by organs affiliated to the regime’s Supreme Leader Ali Khamenei, in particular the Islamic Revolutionary Guards Corps (IRGC).

Dr. Sanabargh Zahedi, Chairman of the Judicial Committee of the National Council of Resistance of Iran (NCRI)


http://www.ncr-iran.org/en/blog/19136-another-plunge-in-iran-s-rial

blackpp13
Anybody know anything about the Iranian rial currency. Is it in this basket, What year and amount should we buy.
Thanks


winneriam
Take the chance on ebay. Your federal reserve money may buy the rial for $20 or less per $100,000 but if a collapse comes it will not buy anything. We owe $18.4 trillion dollars and the notional derivatives that the banks that make up the federal reserves owes another $700 trillion, which it cannot ever pay back since it is 20 times the world's gross domestic product. Take a chance. It's the cost of a dinner in most places and you only rent that. hehe

Yea, they lost value again ... sounds like a good investment to me. Never mind you will be investing in one of the biggest exporters of hatred and terrorism in the world ...