Users Online Now:
GLP Poker Rooms
GiveMeGossip.com - Gossip Forum
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 >>
NASA About To Make An’Amazing’ Announcement About Pluto
Researchers Grow ‘Mini Human Brain’ In A Lab
Scientists Finally Prove That Life After Death Exists
Native Americans Now Have Full Legalization of Marijuana On Reservation Lands
Assassinated Author Predicted Rise In School Shootings In 1991 Book
Matt Drudge: Independent News Is About To Be Killed
Biblical City of Sodom Finally Uncovered in Jordan Valley?
Brace Yourself: The Old Farmer's Almanac Is Predicting Another Snowy Winter
Something Strange Is Happening At The North Pole Of The Moon
How did these three inmates beat three Harvard students in a debate?
Underground City Of Giants Discovered In The Grand Canyon
Behold a Pale Gun Confiscation Agenda
Electromagnetic Pulse: One Day We Will Wake Up In An America Without Electricity And Society Will Totally Break Down
Obama Preparing More Executive Actions on Gun Control
Matt Drudge Drops Bombshell Warning in Surprise Interview — “I had a Supreme Court Justice say to me it’s over”
Aliens Exist: Here Is The PROOF
Moon Landing A Hoax? Here’s 10 Reasons Why
Nobel Prize for Physics for discovering the mass of neutrinos
WATCH: Fire ants form life rafts out of their own bodies in order to survive historic flooding in South Carolina.
America's cities will collapse into utter chaos the day the EBT cards stop working
Watch: Peruvian Teen Convulses After Playing Ouija Board App (Video)
Huge Container Ship Disappears In Bermuda Triangle
Mysterious Alien Being Discovered In a Secret Chamber Inside the Great Pyramid in Egypt
This Indian River Water Has Reduced For The First Time In History And The Secret Hidden Inside Them?!
This Mind-Blowing Video About The Universe Is The Reason You Won’t Sleep Tonight
This Flag Represents The Principle, "Fight For What You Believe In."
This Is The Rebel Flag, "You're Either Free Or You're Not."
Disclaimer / Copyright Info
with questions or comments about this site.
"Godlike Productions" & "GLP" are registered trademarks of Zero Point Ltd. Godlike™
Website Design Copyright © 1999 - 2015 Godlikeproductions.com
Page generated in 0.007s (5 queries)