on a possible government decision to more than halve the value of the
US dollar against the Iranian currency and set it at 4500 rials. The
green back is currently valued at 9300 rials.
http://www.presstv.ir/detail.aspx?id=64912§ionid=3510213
First the Seyyeds decided, to sell the petty 2.5 mln b/d (when the
world's demand is 85 mln b/d), in Euros. As the threats of war raised
commodities, so Gold and notably oil went up in US Dollar terms. But
the world media, for some absurd reason, made this assertion; that the
commodities are being bought, because the US dollar is down, and they
are cheaper.
But normally, when there is a crisis, like in the 70's, safe havens
benefit. The Gold went up and so did the US dollar high security
assets, like US Treasuries. In those days there was no Euro, and there
were no counter trades for the Yen to benefit from. But this time
round, the Euro, and those people borrowing in Yen (which is making it
extraordinarily highs, as the debt mountain has mushroomed), have gone
up against the US dollar.
Now within this background, this Seyyed utter nutter, wants to
overnight change the value of the rial. With all the sanctions on any
financing outside HSBC, Standard Chartered Bank, and all those Hawala
traders in the Persian Gulf, it is going to be almost impossible for
this bozo to implement his task.
Who cares what he says, the markets decide, and at the moment,
everyone is dumping Rial, as no one wants it, with these animals in
charge.
