Iran's rial hits an all-time-low against the US dollar

Gerald · 10-01-12, 07:26 AM

Quote:

Iran's currency, the rial, fell almost 10% on Monday to a record low against the dollar, leaving it with a loss of 25% in one week.

The rial was trading at 32,250 against the dollar at 12:00BST on Monday.

On Sunday, it was worth about 29,720, according to the Iranian currency-tracking website Mazanex.

The fall suggests economic sanctions imposed over its disputed nuclear programme are hitting economic activity ever harder.

The latest slide appears to have been triggered by a government move to supply dollars to importers of certain basic goods at a special rate in an attempt to rein in the currency slide, but the move has had the opposite effect.

A weaker domestic currency makes imports more expensive, raising prices for people inside Iran.

Dramatic currency falls can also lead to uncertain markets as dealers hoard the harder currency in the hope that it will gain even more in value.

Iran is all but frozen out of the global banking system as a result of largely US-led sanctions designed to discourage what it says is Iran's attempts to build a nuclear weapon.

http://www.bbc.co.uk/news/business-19786662

Note: 1 October 2012 Last updated at 11:25 GMT

soopaman2 · 10-01-12, 07:41 PM

They can ask China, Russia or Switzerland for a bailout?

Gerald · 10-02-12, 10:44 AM

http://www.bbc.co.uk/news/business-19798655

Note: Update record, 2 October 2012 Last updated at 15:30 GMT

10-01-12, 07:41 PM	#2
soopaman2 Der Alte Join Date: Sep 2011 Location: New Jersey, USA Posts: 3,316 Downloads: 61 Uploads: 0	They can ask China, Russia or Switzerland for a bailout? __________________ If Hitler invaded Hell I would make at least a favourable reference to the devil in the House of Commons. -Winston Churchill- The most fascinating man in the world.

10-02-12, 10:44 AM	#3
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	Iran rial: Mahmoud Ahmadinejad blames slide on 'enemies' http://www.bbc.co.uk/news/business-19798655 Note: Update record, 2 October 2012 Last updated at 15:30 GMT __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie