The United States of America's currency falls 17% in one day, hitting record low
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Brown_Pride
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WTF WHERE IS THIS SMILEY!!!
Fuk that biden smiley this is what needs to be up in that thread.
OP:
LOL
Dusty Bake Activate
Fukk your corny debates
Wouldn't be surprised if ours did the same in the near future. Swiss francs & GBP FTW
88m3
Fast Money & Foreign Objects
Pressures Drive Iran's Currency to New Low
Domestic Mismanagement, Foreign Rhetoric and Sanctions Cited in Rial's Fall
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By BENOÎT FAUCON and KATIE MARTIN
The Iranian currency, battered by international sanctions and domestic turmoil, fell to new lows on Monday, triggering a new round of accusations of mismanagement among Iranian politicians.
The currency responded in part to what some Iranian traders interpreted as tougher talk from U.S. and Israeli officials, as well the Iranian central bank's inauguration of a new currency exchange in Tehran on Sept. 24.
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Bloomberg News
Iranian rials and foreign currency on display at a Tehran street stall.
The Iranian rial rate fell on Monday to as low as 33,500 rials to the dollar on informal currency bazaars and exchanges, down 13% on the day, after already falling sharply last week, according to traders in Tehran and currency websites.
The official rate—available in limited amounts for students and tourists traveling abroad—remained at the same 12,260 rials per dollar it has been at for several years.
Last week, President Barack Obama said at the United Nations that the U.S. will "do what we must" to prevent Iran from getting an atomic weapon. This was followed by hints by Israel's Prime Minister Benjamin Netanyahu that Israel could strike by mid-2013 if Tehran keeps up with its nuclear program.
The statements, though not fundamentally different from previous policies, created some jitters in Tehran that traders were able to capitalize on.
"The sharpening of the rhetoric could lead some to think we're closer to a military strike," Mostafa Pakzad, chairman of financial trading house Pakzad Consulting Corp., said from Tehran. For speculators, "this is a perfect opportunity to make money."
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White House press secretary Jay Carney said the rial's drop was a result of the punitive measures imposed by the U.S. and its allies for Tehran's refusal to address international concerns about its nuclear program. "That situation is a direct result of the choices made by Iranian leaders," Mr. Carney said.
Meanwhile, Iran's launch last week of an official foreign-currency exchange designed to curb black-market speculation appeared to have backfired. The bourse, set up by the Central Bank, was intended to help stabilize the currency by offering importers a rate about 2% cheaper than street rates.
Traders in the street exchanges and bazaars reacted by undercutting the rates on the exchange, a Tehran businessman said. The initiative had the unintended consequence of putting pressure on the rial, said analyst Dina Ahmad of BNP Paribas.
The rial's decline has put divisions within Iran's government on display. President Mahmoud Ahmadinejad, at a news conference in New York Wednesday, accused financial authorities of mismanaging the currency.
Iran's parliament launched a probe last week into whether the central bank and the government were responding adequately to the currency's decline.
Meanwhile, a member of the Iranian parliament's economic commission accused the president Sunday of deliberately mismanaging the currency market.
Deputy speaker Mohammad-Reza Bahonar didn't rule out trying to bring in Mr. Ahmadinejad for questioning on the matter, according to Qods, a hard-line Iranian newspaper.
Others in Iran threatened a crackdown on speculators—a frequent response to currency drops, though such efforts have rarely been effective. "If we identify an individual or a group that is distorting [the markets], we will certainly deal with them," said a judiciary spokesman, the Tehran Times reported.
Some currency traders appeared rattled by the rial's fall. Many closed on Monday afternoon because they feared they could lose money, a foreign diplomat in Tehran said. The diplomat said the rial was nearly 18% down on the day against the euro at 40,000 rials per euro.
Monday's decline was unusually steep, even against the slide in the rial seen over this year, which accelerated last month.
Iran's official ISNA news agency reported the 32,500 rial to the dollar rate, and the Mehr news agency and the exchange-tracking website Mesghal.com late Monday reported the rial trading as 33,500 to the dollar.
That was sharply lower than the close of trade on Sunday, when the rial exchanged at 29,600 to the dollar. At the end of last year, the rial fetched around 13,000 to the dollar.
The state-controlled news agency IRNA quoted a spokesman for Iran's money changers' association, Nosrat Ezzati, as saying the latest rates for the rial "are artificial as no real exchange is happening in the market."
Since the end of last year, the rial has lost 75% of its value against the dollar. The renewed drop in the domestic currency is likely to deepen the pain felt by Iranians, who have suffered under the weight of sanctions aimed at getting the country to scale back its nuclear program."The collapse in the currency pushes up inflation. Middle-class savings are getting wiped out," said Charles Robertson, global chief economist at Renaissance Capital in London.
Many Iranians were trying to sell their real-estate assets to get secure savings in dollars, Mr. Pakzad said. "With their net worth diminishing, people with wealth are converting their rials-assets into dollars," he said.
The fluctuations are also affecting businesses. One Iranian oil and gas equipment importer said he had to suspend business because the currency fluctuations made it impossible to reliably supply quotes to clients for orders that take months to be paid.
With the rial falling so fast against the dollar, "you never know what you have in your pocket," he said.
Write to Katie Martin at katie.martin@dowjones.com
Domestic Mismanagement, Foreign Rhetoric and Sanctions Cited in Rial's Fall
Article
Comments (14)
more in Markets »
smaller
Larger
By BENOÎT FAUCON and KATIE MARTIN
The Iranian currency, battered by international sanctions and domestic turmoil, fell to new lows on Monday, triggering a new round of accusations of mismanagement among Iranian politicians.
The currency responded in part to what some Iranian traders interpreted as tougher talk from U.S. and Israeli officials, as well the Iranian central bank's inauguration of a new currency exchange in Tehran on Sept. 24.
Enlarge Image
image
image
Bloomberg News
Iranian rials and foreign currency on display at a Tehran street stall.
The Iranian rial rate fell on Monday to as low as 33,500 rials to the dollar on informal currency bazaars and exchanges, down 13% on the day, after already falling sharply last week, according to traders in Tehran and currency websites.
The official rate—available in limited amounts for students and tourists traveling abroad—remained at the same 12,260 rials per dollar it has been at for several years.
Last week, President Barack Obama said at the United Nations that the U.S. will "do what we must" to prevent Iran from getting an atomic weapon. This was followed by hints by Israel's Prime Minister Benjamin Netanyahu that Israel could strike by mid-2013 if Tehran keeps up with its nuclear program.
The statements, though not fundamentally different from previous policies, created some jitters in Tehran that traders were able to capitalize on.
"The sharpening of the rhetoric could lead some to think we're closer to a military strike," Mostafa Pakzad, chairman of financial trading house Pakzad Consulting Corp., said from Tehran. For speculators, "this is a perfect opportunity to make money."
Enlarge Image
image
image
White House press secretary Jay Carney said the rial's drop was a result of the punitive measures imposed by the U.S. and its allies for Tehran's refusal to address international concerns about its nuclear program. "That situation is a direct result of the choices made by Iranian leaders," Mr. Carney said.
Meanwhile, Iran's launch last week of an official foreign-currency exchange designed to curb black-market speculation appeared to have backfired. The bourse, set up by the Central Bank, was intended to help stabilize the currency by offering importers a rate about 2% cheaper than street rates.
Traders in the street exchanges and bazaars reacted by undercutting the rates on the exchange, a Tehran businessman said. The initiative had the unintended consequence of putting pressure on the rial, said analyst Dina Ahmad of BNP Paribas.
The rial's decline has put divisions within Iran's government on display. President Mahmoud Ahmadinejad, at a news conference in New York Wednesday, accused financial authorities of mismanaging the currency.
Iran's parliament launched a probe last week into whether the central bank and the government were responding adequately to the currency's decline.
Meanwhile, a member of the Iranian parliament's economic commission accused the president Sunday of deliberately mismanaging the currency market.
Deputy speaker Mohammad-Reza Bahonar didn't rule out trying to bring in Mr. Ahmadinejad for questioning on the matter, according to Qods, a hard-line Iranian newspaper.
Others in Iran threatened a crackdown on speculators—a frequent response to currency drops, though such efforts have rarely been effective. "If we identify an individual or a group that is distorting [the markets], we will certainly deal with them," said a judiciary spokesman, the Tehran Times reported.
Some currency traders appeared rattled by the rial's fall. Many closed on Monday afternoon because they feared they could lose money, a foreign diplomat in Tehran said. The diplomat said the rial was nearly 18% down on the day against the euro at 40,000 rials per euro.
Monday's decline was unusually steep, even against the slide in the rial seen over this year, which accelerated last month.
Iran's official ISNA news agency reported the 32,500 rial to the dollar rate, and the Mehr news agency and the exchange-tracking website Mesghal.com late Monday reported the rial trading as 33,500 to the dollar.
That was sharply lower than the close of trade on Sunday, when the rial exchanged at 29,600 to the dollar. At the end of last year, the rial fetched around 13,000 to the dollar.
The state-controlled news agency IRNA quoted a spokesman for Iran's money changers' association, Nosrat Ezzati, as saying the latest rates for the rial "are artificial as no real exchange is happening in the market."
Since the end of last year, the rial has lost 75% of its value against the dollar. The renewed drop in the domestic currency is likely to deepen the pain felt by Iranians, who have suffered under the weight of sanctions aimed at getting the country to scale back its nuclear program."The collapse in the currency pushes up inflation. Middle-class savings are getting wiped out," said Charles Robertson, global chief economist at Renaissance Capital in London.
Many Iranians were trying to sell their real-estate assets to get secure savings in dollars, Mr. Pakzad said. "With their net worth diminishing, people with wealth are converting their rials-assets into dollars," he said.
The fluctuations are also affecting businesses. One Iranian oil and gas equipment importer said he had to suspend business because the currency fluctuations made it impossible to reliably supply quotes to clients for orders that take months to be paid.
With the rial falling so fast against the dollar, "you never know what you have in your pocket," he said.
Write to Katie Martin at katie.martin@dowjones.com
Iran Currency Falls to New Lows - WSJ.com
88m3
Fast Money & Foreign Objects
Young_and_Reckless
Is better than you...
You dikk.
ExodusNirvana
Change is inevitable...
OP 
Techniec
Drugs and Kalashnikovs
Theatricality and deception, powerful agents for the uninitiated. But we are initiated, aren't we
SumBlackguyz
Cacs Gonna Cac
Theatricality and deception, powerful agents for the uninitiated. But we are initiated, aren't we
