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 >>
Immaculate star might be the most perfectly spherical object in the universe
8 foods you'd never guess were artificially colored
Asteroid strike that doomed dinosaurs created 'instant Mount Everest'
Your intelligence may depend on your pupil size
Gmail plug-in means never having to say you're sorry
Was Einstein wrong? His views about the speed of light may soon be challenged
This gene may explain why some people like to drink more than others
What is your sweat trying to tell you?
Radioactive diamonds are turned into batteries that last for thousands of years
Matter is spontaneously appearing and then disappearing around this distant star
NASA Research Findings Stun Scientists, Seemingly Defy Important Law of Physics
America Is Seeing the Leviathan Manifestation
Why Are So Many Among The Elite Building Luxury Bunkers In Preparation For An Imminent ‘Apocalypse’?
Earliest noctilucent cloud season start in Antarctica on record
Astronauts in space spooked by mysterious knocking sound that no one can explain
Record cold coming to ‘almost entire US
Alt-Media Fires Back at Mainstream Press Promotion of News Site Blacklist
CIA MKULTRA: Drugs to Ruin the Nation
Hackers Take A Million Homes Offline in Attack: “Internet, Telephone, TV Outage” It was like a scene straight out of Mr. Robot.
“Trump Chosen By Elite To Be Scapegoat For Massive 2017 Crash!” Says Financial Writer
Unbelievable SciFi Military “Weapons That Actually Exist”
The Coming Struggle Between Individualism vs Collectivism
Neuroscience Hasn’t Been Weaponized – It’s Been A Tool Of War From The Start
Boston Police Department Set to Join Trend of Using Internet Surveillance Tech
Bill Targeting “Russian Propaganda” Passes in House
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 - 2016 Godlikeproductions.com
Page generated in 0.005s (5 queries)