Samson » October 31st, 2016
Entered the security forces, on Monday, Karama district on the left coast of the city of Mosul.
The neighborhood is the first neighborhoods of the city center.
Don961 » October 31st, 2016
The unification of foreign exchange rates would help solve many issues in Iran’s economy, said a senior member of the Association of Bureaux de Change Operators of Iran.
Saeid Mojtahedi, who is also the head of the supervisory council of the body, said any measure for promoting transparency in the currency market would boost the demand side. “It would also prevent speculation in markets,” ILNA quoted Mojtahedi as saying on Saturday.
Iran has been using a dual exchange rate since 2012 when international economic and banking restrictions were tightened over the nuclear program.
Central Bank of Iran Governor Valiollah Seif has pledged to introduce a floating forex regime by the end of the Iranian fiscal year in March 2017.
The single forex regime would help importers and exporters in particular, according to the moneychanger, as “they would be able to make better decisions and come up with more clear plans about the future of their business”.
Mojtahedi added that the recent surge in US dollar rate against rial in the markets is mostly caused by volatility in international forex markets. The US dollar surpassed 36,000 rials on Monday, marking a multi-month high.
The association member noted that he does not expect the unified exchange rates to be lower than the market rate, even though earlier plans aimed for single rates to be lower than the market rate.
Adnan Mousapour, a board member of Iran Chamber of Commerce, Industries, Mines and Agriculture, believes that the market should set the unified forex rates, “rather than the government or the banking system”.
“The forex rates have been [artificially] kept lower [than the open market rate] in recent years, whereas goods’ prices have been surging. This has caused major obstacles for exporters.” he told the Khabar Online website.
The merchant thinks forex rates would be significantly higher than current rates, if there were no pressure for keeping them low.
Molson88 » October 31st, 2016
Zimbabwe’s tentative return to its own currency is getting a hostile reception from citizens, who fear a recurrence of the 500-billion percent inflation that plagued the southern African nation before it abandoned its dollar seven years ago.
The country will soon introduce so-called bond notes, pegged to parity with the United States dollar and beginning with denominations worth from $2 to $5, central bank Governor John Mangudya said on Wednesday. It’s an attempt to complement the range of foreign currencies used in the beleaguered economy since 2009, which have been in short supply following a collapse in exports.
James Sakupwanya, who sells items such as maize meal, tinned food and blankets from his shop in Mutare, southeast of Harare, isn’t buying it. Sakupwanya and Zimbabweans like him see the notes as a step back to the hated Zimbabwean dollar, which by the time of its demise was valued at 150-trillion to the greenback, according to the central bank.
“We will reject it,” Sakupwanya said. “They can legislate as much as they want, but it is their currency which they want to impose on us to manage the crisis they created.”
An earlier announcement of plans to introduce the currency sparked riots in Harare even after the government said the notes, which will be legal tender only in Zimbabwe, will be backed by a $200-million loan from a multilateral lender. Banks have limited cash withdrawals to prevent hoarding of dollars, used in 95% of all transactions in the country, and some shops reported they’re running short of essential goods.
Zimbabwe has been gripped by a liquidity crisis that’s forced the government to pay its workers late in recent months. Finance Minister Patrick Chinamasa said on September 9 that the state may cut 25 000 civil service jobs as it struggles to meet pay obligations. Zimbabwe owes lenders including the International Monetary Fund, World Bank and Africa Development Bank about $9-billion, according to the finance ministry.
In addition to the U.S. dollar, Zimbabwe also uses eight other currencies, including the South African rand, euro, British pound and Chinese yuan. Getting Zimbabweans to adopt the bond notes will be difficult, given fresh memories of a worthless currency, Mangudya and the chairwoman of the Zimbabwe Revenue Authority, Willia Bonyongwe, have said.
“If people don’t want bond notes, they don’t have to accept them,” Mangudya told business leaders in early October, and Bonyongwe said in an e-mailed statement that the expected arrival of bond notes had caused “uncertainty in the economy” and led to people hoarding dollars.
The bond notes won’t address structural challenges facing the economy, said Naome Chakanya, an economist with the Labour and Economic Research Institute, a Harare-based think tank. The economy collapsed in the wake of a campaign to seize white-owned commercial farms and hand them over to black subsistence farmers, triggering a near decade-long recession as exports from tobacco to roses slumped.
About three million of Zimbabwe’s 13-million people still live abroad after fleeing the economic crisis, according to the United Nations. Employment in the manufacturing sector has dropped to 85 000 from 200 000 in 2009, according to the Confederation of Zimbabwe Industries, and 4 600 companies have closed down in the past three years, according to central bank data.
“Some are going to accept it, some are going to reject it, others will be frog-marched to accept since the cash crisis is worsening,” Chakanya said. “There is a high probability of emergence of a black market for U.S. dollars, thus creating more problems for the economy” including inflation.
Adding to the suspicion is uncertainty about who exactly will lend Zimbabwe the money to back the bond notes. Gift Simwaka, the African Export-Import Bank’s regional manager for southern Africa, declined to confirm whether the notes will be underwritten by the multi-lateral lender.
Without a hard-cash foundation, the notes will be no different to so-called bearer checks, a temporary currency with denominations of as much as 100-trillion Zimbabwean dollars introduced at the height of hyperinflation in 2008, Sakupwanya said.
“They are forgetting that in 2008 we rejected their bearer checks, so what stops us from rejecting their bond notes,” he said. — Bloomberg