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Iran Calls In European Reserves

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Iran has begun moving its foreign exchange reserves out of the EU ahead of possible sanctions.

Iran has called for the Organisation of Petroleum Exporting Countries (OPEC) to cut output.

US expats instructed to have zero involvement with Iranian nationals, corporate or otherwise.

This is another nail in the coffin no two ways about it. Another transfer of cash from Europe to Asian banks.

Get ready for CREDIT TIGHTENING

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One possible sanction is the freezing of Iranian deposits in western banks.

Iran’s official accounts are protected by the Vienna Convention governing diplomatic relations until International sanctions are in place.

Iran is likely to move most if not all of its foreign exchange reserves currently held in Western banks and transfer to South East Asian banks by the end of today.

This is a pre-emptive economic strike by the Iranian government; once again they have out manoeuvred the West.

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General estimates are that Tehran would have earned more than $40 billion in oil revenues by the end of the year to March 2006. Of this, $16 billion goes straight to budgeted government spending, while the rest goes to the Central Bank of Iran which keeps an unknown amount in foreign accounts.

Bearing in mind Irans central banks earnings from previous years Iran is likely to be moving tens of billions of dollars out of European banks right now.

This has potential for big market movement, not many organisations can write multi billion dollar cheques without reeling.

European banks may well start calling in loans.

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Guest Charlie The Tramp

Blimey! It's all hapening...

Any ideas what sums we're talking about here? Is this why the SMs are tanking big time as I type?

Charlie mentioned on Wednesday that if we see mass selling today, then that would be indicative of something more significant about to take place...

Am I correct in that appraisal Chuck?

I can`t access the BBC market data page to have a look, it`s coming up blank. Are they trying to hide bad news :(

http://news.bbc.co.uk/1/hi/business/market_data/default.stm

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If Tehran phone the bank and say we would like to withdraw our $5 billion dollars the bank would have to raise $5 billion dollars to send to Tehran to honour the balance sheet, hence selling their holdings to raise cash.

Hence, at three o'clock today when this scenario actually panned out the banks instructed a sale of assets to raise the cash and all the markets took a big hit. The DOW is still falling fast.

Would the same banks not also raise cash by calling in loans? Or any means available in fact?

You can assume all the large banking groups in Europe are clawing to raise cash right now.

If Tehran demands further withdrawls now the DOW and NASDAQ are the only two markets left open.

They could potentially take huge hits. Watch this space...

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Given the reserves are transferring out of Europe and the stock markets are now all closed will we see a 'Black Monday'?

Did Iran announce this late in the day to lesser the impact on the stock markets - giving the European countries time to digest this over the weekend?

Edit: Added Link

Interesting reading...

... and here

Edited by Shamus

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Given the reserves are transferring out of Europe and the stock markets are now all closed will we see a 'Black Monday'?

Did Iran announce this late in the day to lesser the impact on the stock markets - giving the European countries time to digest this over the weekend?

Dunno we might see some black mail style diplomacy over the weekend

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True. I'm broke, in case anyone is interested.

ah the beauty of HPC... the rich and the paupers rubbingh shoulders, finding common cause. Tremendous.

:)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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