Tuesday, 25 December 2012

The Latest from Iran (25 December): Is the Currency Falling Again?

0635 GMT: It has been difficult to establish the "real" rate of the Iranian currency since October, when authorities suspended the open market and the Central Bank set a special "trade room" to provide foreign exchange for some importers and preferred customers. To the best of our knowledge, the Rial --- which had dropped almost 70% this year to close to 40000:1 vs. the US dollar --- had strengthened to 27000:1.

However, since early December EA sources have been reporting that, with the open market still restricted, the Rial has been slipping beyond the 30000:1 mark. Yesterday, the opposition site Radio Zamaneh, without citing sources, said the currency had fallen significantly in a week to 33500:1.

Now Iranian media are putting out similar reports. The Iranian Students News Agency puts the rate at 332000:1 and writes that gold prices are rising again. Baztab has a rate of more than 34000:1, attributing the Rial's latest drop to President Ahmadinejad's speech on the economy on Saturday night.

from EA WorldView: EA Iran

Posted via email from lissping