Historical collapse of the Turkish and Iranian currency amid stability of the Iraqi dinar
Historical collapse of the Turkish and Iranian currency amid stability of the Iraqi dinar
May 04, 2018 – 4:18
Sumer News: The Turkish lira and the Iranian Tuman witnessed a historic decline against the dollar exchange rate, amid the stability witnessed by the Iraqi dinar.
On April 10, Iran took drastic steps to set the local currency rate against the dollar in an effort to stop its decline after losing about a third of its value in six months.
Thus, the rate of exchange was set at one dollar against 42,000 riyals-tumans as a reference for exchange operations with other currencies at their prices compared to the exchange rate in the United States.
“The price of the Iranian Toman fell to an unprecedented level in the history of the country, reaching 60300 dollars for $ 100 at the money exchange shops inside Iran,” the banking offices in Iran told Shafak News.
Currency experts blame the historic collapse on the problems of the nuclear program with the United States, internal problems between the front of President Hassan Rowhani and Iran’s Revolutionary Guard Front.
On April 15, the central bank banned “until further notice” the exchange offices to buy or sell hard currencies, leaving only banks to authorize such trades. But in practice, the banks refuse to do so, according to several statements.
In the wake of US financial sanctions against Tehran, international credit cards have become out of use in Iran and tourists must bring in enough hard currency to stay.
In Turkey, data showed on Thursday that consumer price inflation rose more-than-expected in April to about 11 percent year-on-year, pushing the lira to a record low as concerns over the central bank’s inability to control price hikes.
Inflation, which has a double-digit rate and a 10-percent lira against the dollar since the beginning of the year, is a source of growing concern for the government as it prepares for early parliamentary and presidential elections on June 24.
The consumer price index rose 1.87 percent on a monthly basis, exceeding expectations in a Reuters poll of 1.6 percent, the index said. The index rose 10.85 percent year-on-year.
Basic inflation rose 12.24 percent year-on-year, Reuters reported.
The lira, one of the worst performing currencies in emerging markets since the beginning of the year, fell to a record low of 4.2487 lira against the dollar, from 4.1785 on Wednesday.
At 07:05 GMT it was trading at 4.2005 against the dollar.
Amid currency turmoil in neighboring Iran and Turkey, the currency in Iraq is stable against the dollar exchange rate.
The Iraqi Central Bank commented that “the improvement of the value of the Iraqi dinar against the dollar, is not a new phenomenon, but the outcome of the work continued for a full year, was through the identification of significant measures on the process of currency presentation and address the violations of demand.
It says Iraq’s cash reserves exceeded $ 50 billion.
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