Users Online Now:
GLP Poker Rooms
Donate To GLP
Back to Forum
Back to Thread
REPLY TO THREAD
A Rare Occurrence In The Saudi Currency Market Tells You That Trouble Is Brewing In The Middle East
Ms Sans Serif
In accordance with industry accepted best practices we ask that users limit their copy / paste of copyrighted material to the relevant portions of the article you wish to discuss and no more than 50% of the source material, provide a link back to the original article and provide your original comments / criticism in your post with the article.
[quote:Anonymous Coward 1211168:MV8yMDA3NzIwXzMzNzM1MTU4X0NDMERGRThE] The head of the national police, Esmail Ahmadi Moghadam, was quoted by the Fars news agency as saying a special unit comprised of police chiefs and government economic officials had been created "to combat those perturbing the currency market." He added that many people were keeping stashes of foreign currency and gold at home, "which is having a negative effect on the economy." The crackdown was an apparent bid to halt a dramatic plunge in the value of Iran's currency this week. On Tuesday, President Mahmoud Ahmadinejad said Western sanctions were mostly to blame. But rivals said his mismanagement of the economy was the main cause. One money changer said almost no transactions were taking place in the market, making any valuation unreliable, but the assumption was the rial had stabilised early Wednesday at around 34,000 to the dollar. Online websites that normally track the currency market were censored, none giving the rial's value against the dollar. On Tuesday, the rial closed at around 36,100 to the dollar. A week ago, it was trading at around 22,000 to the greenback and at 13,000 a year ago. The money's plunge has greatly increased inflation in Iran, which is widely seen as far higher than the official 23.5 percent given by the central bank. Food costs, notably, have spiralled, to the concern of Iranian families. Merchants, some of whom have lost millions of dollars in a day, say doing business has become nearly impossible. The US government has said it sees the rial's plunge as proof Western sanctions are having a big impact on the Islamic republic's economy. But Ahmadinejad said that, even with the "psychological war on the exchange market," Iran would not be pressured into curbing its nuclear activities -- the stated aim of the sanctions. http://uk.finance.yahoo.com/news/iran-crackdown-money-changers-currency-102042205.html [/quote]
An important shift is developing in Saudi Arabian currency derivatives markets as Iran becomes engulfed in populist protests amid hyperinflationary pressures and armed conflict breaks out between Turkey and Syria, heightening concerns about tensions in the Middle East.
The 12-month forward rate on the Saudi Arabian riyal – or the difference between how many riyals traders think a dollar will be able to buy a year from now versus how many riyals a dollar can buy today – has been hovering just above zero for the past two weeks.
In other words, as pointed out by BNP's Bartosz Pawlowski, traders are expecting the riyal to depreciate against the dollar.
And that is something that almost never happens – unless markets are getting really worried about Saudi Arabia, one of the most stable countries in the region.
link to www.businessinsider.com
Pictures (click to insert)
Big Round Smilies
Aliens and Space
Friendship & Love
Misc Small Smilies
View All Categories
Next Page >>
Ferguson ‘Witness 41’ Comes Forward: Says She Taped Michael Brown Shooting On Her Cell Phone
The Fascist Monopoly on Electricity
The Chinese government is building affordable housing in Brooklyn
New Study: Hepatitis B Vaccination in France Sparked a Wave of New Cases of Multiple Sclerosis
Rouble collapse prompts Moscow shopping spree
Hedge Fund Manager Who Remembers 1998 Rout Says Prepare for Pain
Police union boss flips out over cartoon showing kids telling Santa, "Keep us safe from the police"
13,500,000 Millennials Live in Poverty.
46,000,000 Americans on Food Stamps.
65 Percent of Children Live in Households on Federal Aid Programs
Sony Hackers Threaten 9/11 Attack on Movie Theaters That Screen ‘The Interview’
Why Are Atheists Investing So Much Money on Billboards Fighting a God They Don’t Think Exists?
These American Generals Are Taking a Public Stand Against Barack H. Obama
Is Your Church Secretly Indoctrinating You To Accept Chrislam?
‘Lucius II The Prophecy’ Video Game Lets You Be The Antichrist
State Orders All-Natural Creamery To Inject This In Its Milk
Video: Border Patrol Agent Claims FEMA Expects ‘200 Million Deaths’
ALERT: Secret Service experts worry about Obama’s safety; now fearing a repeat of JFK
How long can Ebola live?
Research finds copyright confusion has 'chilling effects' in online creative publishing
Attitudes to climate change depend on people's sense of belonging to the planet
Climate change could leave cities more in the dark
Crashing crude may blow a $1.6 trillion hole in the global oil sector, annually
Some experts Warn of bonds funds Crashing in 2015
Five reasons why you’re totally crazy if you aren’t growing your own food
Disclaimer / Copyright Info
with questions or comments about this site.
"Godlike Productions" & "GLP" are registered trademarks of Zero Point Ltd.
Website Design Copyright © 1999 - 2014 Godlikeproductions.com
Page generated in 0.006s (5 queries)