Iranians Panic - "Can't Find Dollars" After Government Enforces Currency Controls

Yesterday saw the Iranian Rial crash to a record low 60,000 per USDollar on the unregulated markets, according to Tasnim News agency, having lost more than a third of its value in the last six months.

This prompted an angry response from Iran’s First Vice President Eshaq Jahangiri who said in a statement recorded for state TV and published on its website that enemies of the Islamic Republic and of the government were behind the instability.

As Bloomberg reports, Jahangiri said the sudden decline was “unnatural and unprecedented” because tens of billions of dollars worth of foreign currency had flowed into Iran in recent weeks from the country’s export revenues and this showed that a wider political plot sought to discredit the government of President Hassan Rouhani and foment instability.

It’s natural that our enemies and opponents, especially the Americans, after the nuclear deal was agreed and after Trump took office, have made great efforts to try and present Iran’s economy as turbulent and try to discourage anyone from working with Iran,” Jahangiri said.

And so Iran enforced a rate of 42,000 Rial per USD warning that anyone found selling the dollar at rates higher than 42,000 rials “will be dealt with severely” by judicial authorities and the police, Jahangiri said.

“We do not officially recognize any other rate than this one," he said.

“From tomorrow, any other price that’s offered in the market will be considered contraband, in the same way that illegal drugs are contraband.”

Still, things remain ugly for those holding Rials...

 

“We will certainly use all of the state’s strengths and capabilities in order to, God-willing, steady the market,” government spokesman Mohammad Bagher Nobakht said in a statement shown on state TV. “We accept that this situation is not a good one and it’s against what we want.”

As one would expect, this news prompted widespread concern among Iranians who flocked to exchange offices on Tuesday only to find there were none to buy.

As GulfNews reports, on Ferdowsi Street in central Tehran, home to dozens of banks and currency exchanges, many had hoped to find much cheaper dollars than the day before.

But all along Ferdowsi Street, exchangers were turning hundreds of people away or had signs up saying: “We have no dollars to sell”, while rate boards showed blank spaces for US and European currencies.

“Last night on TV I heard it’s 42,000 so I came here to buy some for my son who is overseas. I’ve checked every exchanger but I couldn’t find any dollars,” said Tahmoores Faravahar, a 71-year-old retired oil sector worker.

Many businesses were forced to halt work amid the uncertainty created over prices and the availability of imported materials.

“After speaking to my usual printer, I’ve had to cancel a project because they weren’t selling anything,” said Payam, a 38-year-old in Tehran who owns a small advertising and publishing company. “I was also planning to advertise for new personnel on Saturday -- I’ve also canceled that plan now.”

Some said this had only created fear and confusion.

“People don’t have hope in the political and economic situation in this country. People are confused and just want to keep their money safe by turning it into dollars.”

One exchange office said it was never clear when the central bank would deliver dollars for them to sell.

“I don’t know why they haven’t come yet today,” he said in the early afternoon. “But the new rate is good. The price was not normal these last few days.”

But this seemed to sum things up well...

“The truth is that the people can’t trust the word of the government that their money will be safe,” said a trader who sold currency on the street and asked to remain anonymous.

One street trader said exchangers would find ways to fiddle the system to get round the new fixed rate, even though Vice-President Eshagh Jahangiri warned this would be considered smuggling.

Comments

Pearson365 PeaceForWorld Wed, 04/11/2018 - 05:14 Permalink

“People don’t have hope in the political and economic situation in this country. People are confused and just want to keep their money safe by turning it into dollars.”

Sheep will be sheep anywhere in the world.  Even with USSA's enemies there is incredible  faith in worthless paper.  They've been duped by their own government that gold is not a valuable substitute.

The Iran nuclear deal was actually all about the payment for oil with gold.

In reply to by PeaceForWorld

PeaceForWorld Pearson365 Wed, 04/11/2018 - 05:53 Permalink

I can't be assuming that you are a terrorist MEK member, a member of Shah's dinasty, or just an agent of Israehell. Because you could be just a petriot.  But please name me ONE country in this world (including USA) that "People  have hope in the political and economic situation in their country?". "People are confused and just want to keep their money safe by turning it into dollars?".  People all over the world are scared and are waiting for recession.  My father and mother arrived to US just before all these started, my father was diagnozed by late stage Pancreatic cancer. We lost him the day after Easter. For many years my parents stayied in Iran hoping that $ would get cheaper. But it got worst. You have to realize that their attack at Iran is because they are following the Great Israeli Project "You can Google it". Iran is the only powerful strategic power in the Middle East and they want it wiped our.  So,  Saudis, Israhellies, and US will use the last resources.

Just wait a bit longer.  Things will work out... Peace brother!

In reply to by Pearson365

DownWithYogaPants PeaceForWorld Wed, 04/11/2018 - 09:48 Permalink

The dollar is corroding and our banksters decide it makes sense to put people of the world off using them. 

Genius idea.  They just can not seem to help themselves.  We need to go drill holes in the walls of the Federal Reserve and decorate them with fake pubic hair.  They'll spend their entire days diddling the holes.  They just can't help themselves.  It is our only hope to distract them from these misconceived pursuits by distracting them thus.

In reply to by PeaceForWorld

RedBaron616 Pearson365 Wed, 04/11/2018 - 06:56 Permalink

You don't seem to understand. With the massive drop in the value of their currencies, gold is now super expensive to them and so out of reach for most. Also, a problem with gold is having it in small enough units to actually trade with it. Silver is better for that.

For everyone's ranting about "worthless paper," I'm willing to bet that each using the "worthless paper" to buy things almost every day. Funny how that works.

In reply to by Pearson365

DownWithYogaPants divingengineer Wed, 04/11/2018 - 09:56 Permalink

Except when you call and say you want to take the items out of the packaging to test to verify there is no tungsten involved they say

"oh we could not refund if at full amount if you take out of the package."

and I say "but if it turns out to be tungsten you will have sold me a pig in a polk"

and they don't really come back with any viable response.  So I tell them ok I'll buy but I will be removing from the package for testing. If it comes back with any tungsten I'll be releasing to the press and suing you.

You have to verify everything you buy or you could end up holding junk and not even know it until you really really need it.

In reply to by divingengineer

bshirley1968 RedBaron616 Wed, 04/11/2018 - 07:56 Permalink

And you think that is by chance or a coincidence?

Money changers gonna "change" them some money. It is how we rule the world.......by telling everyone else how much their money is worth in dollars. When you say their "currency is sinking", compared to what? By what standard? What or whom is causing this?

The money changers in NYC get to determine the value of the rest of the world's money. That's how we crush them without firing a shot. See Venezuela, Iran, Russia, NK, etc. Anyone that doesn't agree with us gets their currency destroyed on the international trading markets.

This is exactly why Russia and China are insulating themselves by buying gold......and why NYC money changers HATE gold. They can't destroy or devalue gold.

In reply to by RedBaron616

SoDamnMad philipat Wed, 04/11/2018 - 07:00 Permalink

Which means they can just shuffle money around. China sells it's bonds and sends dollars to Iran for oil. Iran takes the dollars and uses it to buy German equipment having converted dollars to Euros. China is happy, Iran is happy, Germany is happy. But every one of those put on a sad face to fool the Americans.

In reply to by philipat

holgerdanske Labworks Wed, 04/11/2018 - 03:27 Permalink

Gold and crypto springs to mind.

Don't worry too  much about the Rial in particular, all currencies will crash.

Gold will be a store of value and cryptos can be used to transfer wealth.

I guess we will see a conjunction of the two, provided there is an internet to transact via.

The Americans seem to have lost their collective mind. Discussing porn stars, celebrities and Zuckerberg.

And we march to war.

America, a total destruction of your imperial industrial military complex, together with all their twisted minds is top of my wish list.

They are hell bent on total destruction, let them have it.

 

In reply to by Labworks