Iran Switched 15 Percent of Foreign Exchange Reserves Into Gold

Another interest report from Bloomberg:
Iran has changed some 15 percent of its foreign exchange reserves into gold and will not need to import the metal for the next ten years, Mehr reported, citing Central Bank Governor Mahmoud Bahmani.

Iran’s gold reserves have “multiplied several times” in the past two years, Bahmani said in a report published late yesterday by the state-run news agency.

Bahmani gave no specific figures, only saying the country consumes 30 tons of gold a year and that the central bank will have “ample supplies for the next 10 years” even if it doesn’t increase its gold holdings further.

Iranian President Mahmoud Ahmadinejad said yesterday his country’s foreign exchange reserves exceed $100 billion.
Given that governments cannot profit from the markets, this might be yet another confirmation that gold has topped — at least for now.


Babak said...

Looks like the subsidy is about to hit the fan!

from the WSJ

pej said...

Thanks Babak for the link. I was aware that the subsidies were so massive...

The government, in a five-year phaseout plan, seeks to eliminate up to $100 billion a year in food and energy subsidies that keep costs down for consumers. About 65 million Iranians, out of a population of 75 million, will receive cash payments of about $40 a month to ease the economic pain of lost subsidies. Cash payments in some provinces have already begun..

I really hope that it hits the fan indeed. No one deserves to leave in such conditions... That said, I think oil prices will be key as handovers are still massive, specially for the many millions black-shirts...?