Wednesday, December 21, 2011The collapse of the currency of Iran threaten stability
The value of Iranian rial plunged for several months
Iranian currency fell to its lowest level ever, according to analysts, threatening the stability of the approaching Iran with more sanctions.
To Miss Farhat: Haute value of Iranian currency (Real) to its lowest level ever against the dollar on Tuesday, with investors selling Bbashkl increasing due to economic isolation experienced by Tehran as a result of international sanctions, which the cause of the problem of inflation and fears that can not officials government to devise a practical solution to the crisis.
Weakened the value of the riyal for several months, but this decline came as a shock on Tuesday led to the so-called "new Msty of concern" about Iran's economy in the country, exacerbated by the conflicting information received from Tehran, and the hierarchy which has reinforced the sense of bewilderment and confusion.
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In a report carried by the Iranian media reported that the state-run, the government decided to suspend commercial relations with the United Arab Emirates (the main gate to the exports of Iran) in retaliation for its support of the imposition of U.S. sanctions on Iran, which smallness later Vice President of Iran. Contributed to this decision appears to push Iranian merchants and businesses for sale rial against other currencies.
In this context, the newspaper quoted the "New York Times" for Jawad Salehi-Isfahani, Professor of Economics at the University of Virginia Tech as saying: "It is the most serious financial crisis faced by the Iranian regime, and there are a lot of crises looming on the horizon," adding, "I have a feeling that no one in Iran is responsible for economic policy, not one that can think quickly and take the appropriate decision. "
The agency Fars news agency reported that one U.S. dollar equal to today's 15,150 rials, while it is $ 13,400 against the dollar a few days ago. In late October / October, and reached the value of the riyal to about 7000 to the dollar, which means that the Iranian currency fell in value by more than 50 percent against the dollar in the past few months.
The newspaper considered that the currency crisis comes at the worst time for Iran, which has suffered from the blows of economic due to the cumulative effects of four rounds of UN sanctions in the Security Council, as well as sanctions imposed by the United States, Canada and the European Union on the country over its nuclear program.
International companies are no longer willing to engage in new business with Iran and the European Union, and talked about the possibility of Iranian oil province, one of Tehran's main exports. It is expected that the Obama administration to impose harsh laws to punish banks soon in brotherly and friendly countries dealing with Iran's central bank.
Effects of these steps are clear in Tehran that had problems and financial and economic crises are no longer obvious to one, so that many of the Iranian officials in recent days clearly started out talking about the devastating impact of the isolation imposed on Iran.
To make matters worse is that the U.S. Treasury Department on Tuesday and put the names of 10 companies based in Malta on the black list of companies as a cover for Iran, and specifically to Iran Shipping Lines, which had been placed on the blacklist.
The Treasury Department said in a statement that it took this action because of Iran Shipping Lines Company and its subsidiaries "relied increasingly on multiple fake companies to overcome the impact of U.S. sanctions and international."
Reflects the low value of Iranian rial in part the impact of the problem of inflation in Iran, caused by the government's decision to phase out subsidies for fuel and other basic commodities, causing prices to rise sharply.
To mitigate the impact of the crisis on consumers, the Iranians, the government distributed cash payments, which led to the opposite result and got to aggravate the problem of inflation by increasing the amount of supply in Iran Rial.
The media reported that Iran's official inflation rate was about 20 percent, although the estimates were higher external.
Believed to economists that the ability of the Iranian government to control inflation has weakened in part because of the Islamic ban on charging interest, which prevents banks to offer attractive prices that would encourage the Iranians to keep their money in savings accounts, and keeps the financial cycle in the country and prevent inflation.
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