USD is Gaining on Rial

There has been an increase in USD versus Iranian Rial in Tehran currency exchange markets. However I am not sure if this increase is due to USD gaining against Euro, or it is partially due to inflationary conditions of Iran’s economy. The high inflation usually causes household to seek other ways to save in Iran. The list of investments and savings is topped by purchasing properties and houses, which usually results in an increased in housing prices. The next item is purchasing gold and hard currencies.

An increase in USD value in Iranian markets could be due to increase in popular demand to save in hard currencies such as USD and Euro. I also wonder if sanctions have something to do with it, by limiting the number of suppliers of USD to Iranian merchants and private sector. One simple increase in an economic index and so many questions!

An Ironic Moment

[I am back since it is more difficult not to write]

In an ironic moment of history Hadi Saei, an alderman in Tehran’s city council and a reformist, won Iran’s only gold medal in Beijing Olympics. Iranian athletes achieved only two bronzes and one gold medal. Although many hold international titles, particularly in wrestling, Iranian athletes’ achievements are not as expected or promised.

A frustrated public and many infuriated fans put the blame squarely on the government’s door. Numerous bloggers and fans used every opportunity to criticize Vice President AliAbadi, the chairman of National Organization for Sports, and to some extend Mr. Kaffashian, head of Iran’s National Olympic Committee. This was the costliest attendance in Iran’s history with a budget of 300 billion Rials, or 30 million USD.