What is the real dollar rate? - Complete explaination

Eco-Iran: Economic theory prevents nations from utilising multi-rate currencies since they lead to rent-seeking and corruption. The equalisation of exchange rates is one of the primary objectives that the International Monetary Fund asks of nations for economic transformation. What is the price of this rate in Iran?

Eco Iran claims that the central bank decreased the short-term interest rate from 10% to 5% while raising the three-year long-term interest rate to 22.5%. This has most likely happened to encourage individuals to invest their money in long-term deposits, but the issue with this strategy is that it might accelerate short-term inflation.

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Short-term inflation growth is less affected by long-term deposits. Their owners haven't used it in a year or more, but short-term deposits, which are frequently tied to enterprises, have more of an influence on inflation during the short term.

Inflationary expectations obstruct and many individuals are unable to make deposits owing to job circumstances and other concerns, so even a fall in short-term interest rates and an increase in long-term interest rates may not raise long-term deposits relative to short-term deposits.

Stop making short-term deposits and start making long-term ones instead.

In a situation where inflationary expectations are heightened because the real interest rate of banks in the short term is lower, short-term deposits play a more significant role in containing inflation in the short term, so the reduction of short-term interest in banks can increase the outflow of money to parallel markets. When the short-term interest rate is decreased, it becomes more negative and may lessen the appeal of short-term deposits if parallel markets are drawn to them rather than long-term deposits.

Because of this, the monetary policy of the central bank, which should reduce inflation, might, under a new strategy, fuel short-term inflation increase and fail to restrain price growth in the currency market.

The genuine exchange rate, according to rumours, is 28,000 manats. Economics forbids governments from having multi-rate currency systems because they produce rent and corrupt officials. The equalisation of exchange rates is one of the primary strategies that the International Monetary Fund asks of nations undergoing economic transformation. Pakistan, Egypt, and Lebanon are examples of nations that have changed their monetary systems as a result of the International Monetary Fund's multi-rate exchange system in the current circumstances.

Regardless of the size or even the volume of transactions in this market, economists and economic analysts hold that in a country with a multi-rate currency system and a black dollar market, the exchange rate in the black market affects prices and has the highest association with inflation. This rate has a cap.

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It is an undisputed fact that economies should aim to maximise profits. Since the market is predicated on the higher exchange rate, which is frequently the free market rate, it picks the higher exchange rate when there is a choice between the mandated exchange rate and the black market exchange rate. and the entire economy is affected by this tragic tragedy. Because of this, it is hard for the market maker to exert influence over, control, and strictness over all aspects of pricing and transactions in order to determine the price. the pricing can be adjusted to the point where the producer's expenses are compensated by the rivalry between the supplier and the customer to maximise benefits.

If the foreign exchange market adopts multiple rates, most markets and inflation are governed by the free exchange rate, and in certain markets, the difference between the order price and the free market is known as the profit margin, which in this case is less than the market equilibrium price. The demand for foreign exchange resources rises as a result of the increasing demand at a lower price and the presumed existence of rent.

Due to the market maker's intervention in this scenario, the advantage to the customer increases. The reason for this is because in marketplaces where the mandated rate has an impact, the mandated rate only applies during the early phases of production and supply; throughout the following stages of the flow of products, the free exchange rate is taken into account when determining the price of those commodities.

As the currency bubble subsided, coin transactions became more tranquil.

The Federal Reserve raised interest rates by 25% during its meeting in February, as anticipated by the market. The price of an ounce of gold has increased to above $1,950 due to this problem. The price of an ounce of gold is expected to stabilise above the 1950–1950 range and rise to the 2000–2000 range as the gold market awaits the decision on the interest rate in the central banks of Europe and England.

The Imami coin bubble has shrunk along with the increase of the gold ounce, and at the present price, if the gold ounce can reach the $2000 channel, the bubble would be about 13%.

It has been a while since the market maker removed the restriction on the price fluctuation of coin certificates on the capital market. However, given the disappearance of the buying line and the continued participation of coin flippers in coin certificate trades, it appears that the restriction's removal had no impact on the price adjustment or the restoration of peace. The coin market has not seen it.

Microtransactions' potential value is dim.

The price resistance undermined the capital market's trust, and this problem prompted market reform and the withdrawal of funds. Funds that had progressively lost trust in the stock market and their worth were cautious after receiving the one-time letter from the Competition Council. They got out of the shop. The halving of transaction values, the money leaving the stock market, and the rise in money entering fixed income funds are evidence of this problem.

The value of minor transactions has started to drop, despite the capital market's recent uptick, and fixed income funds continue to be the market's top priority for money inflow. Therefore, it seems doubtful that the present price trends will remain favourable under these circumstances, and it is possible that the index won't be able to confront and surpass the impending resistances.