Iran converts some foreign reserves to gold

[RSG Admin]

Saturday November 15, 9:34 am ET
Iran says it has converted some foreign currency reserves to gold


TEHRAN, Iran (AP) -- Iranian newspapers are quoting a top adviser to President Mahmoud Ahmadinejad as saying the country has converted some of its foreign currency reserves into gold.
The papers published Saturday did not say how much of Iran's estimated $120 billion in reserves were converted into gold. Iranian officials could not immediately be reached for comment.

The daily Jahan-e-Eghtesad, or Economy World, quoted presidential adviser Mojtaba Hashemi Samareh as saying Ahmadinejad ordered the change.

The decision comes after a dramatic fall in oil prices recently triggered by a global financial crisis. About 80 percent of Iran's foreign currency revenue comes from oil exports.

[RSG Admin]

Wednesday November 19 2008 TEHRAN, Nov 19 (Reuters) - Iran is not converting reserves into gold, a cabinet minister said in remarks published on Wednesday, contradicting comments by an aide to the country's president.
"It is not correct that Iran is transferring its reserves to to gold," Economy Minister Shamseddin Hosseini was quoted as saying by the business daily Poul.
Presidential adviser Mojtaba Samareh-Hashemi had been quoted on Saturday by the same newspaper as saying the reserves had been converted to avoid future problems.
Central bank officials in the past said Iran was switching reserves into currencies other than the U.S. dollar because of U.S. and U.N. sanctions. They have also said the bank held some reserves in gold. But they have not usually given a breakdown.
Before oil prices plunged by more than 60 percent from a peak of $147 a barrel in July, Iran made windfall gains from its crude exports and in April estimated its foreign exchange reserves at about $80 billion.
But President Mahmoud Ahmadinejad's government has been criticised for not saving more of the gains to prepare for tougher times, such as now, when crude prices have plunged below $55 a barrel.
The International Monetary Fund said in August that if the price of Iranian crude fell to $75 a barrel, Iran would face a current account deficit in the medium term that would be tough to ride out due to Tehran's financial isolation. (Reporting by Parisa Hafezi; Editing by Clarence Fernandez)