VW to stop doing business in Iran: Bloomberg

A car with the Volkswagen VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. (File/Reuters)
Updated 20 September 2018

VW to stop doing business in Iran: Bloomberg

  • VW will still be able to do some business in Iran under a humanitarian exception
  • VW has scrapped plans it announced in July last year to sell cars in Iran for the first time in 17 years

WASHINGTON: Volkswagen has bowed to American pressure stemming from the US rejection of the multi-party nuclear deal and will end almost all business in Iran, Bloomberg News reported Wednesday.
The accord was reached Tuesday after weeks of talks between the German auto giant and the administration of President Donald Trump, said Richard Grenell, the US Ambassador to Germany, according to Bloomberg.
VW will still be able to do some business in Iran under a humanitarian exception, Bloomberg added.
In May, Trump pulled the US out of the deal it reached with Iran and five other countries in 2015. That accord lifted sanctions against Tehran in exchange for restrictions on its nuclear program.
Now, the US is reimposing those sanctions.
Bloomberg said VW has scrapped plans it announced in July last year to sell cars in Iran for the first time in 17 years.


Decreasing purchasing power pushes Turks toward ‘Syrian gold’

An employee displays gold bars at a Korea Gold Exchange shop in Seoul on July 30, 2020. Virus uncertainty combined with China-US tensions has sent gold soaring nearly 30 percent this year. (AFP)
Updated 9 min 40 sec ago

Decreasing purchasing power pushes Turks toward ‘Syrian gold’

  • Economist Umit Kumcuoglu said the increasing use of lower-alloy “Syrian gold” mainly derives from the need to preserve status and tradition, and would not produce a significant impact on the local economy because it was not a counterfeit product

ANKARA: The escalating price of gold in Turkey, in tandem with the global market and the decrease of purchasing power, has led to an influx of lower quality products from Syria.
One, an imitation known as “Syrian gold” due to its popularity with Syrian jewelers, has gone mainstream, having emanated from the jewelry markets of the southern city of Hatay on the Syrian border.
One gram of gold currently costs 437 lira ($62) in Turkey, up by almost two-fifths since January. Having reached near unaffordable levels, the prices have pushed people to turn toward metals with lower values for things such as wedding ceremonies, where pinning 22-karat gold coins and sets of gold jewelry on couples is a Turkish tradition.
Economist Umit Kumcuoglu said the increasing use of lower-alloy “Syrian gold” mainly derives from the need to preserve status and tradition, and would not produce a significant impact on the local economy because it was not a counterfeit product.
“In southeastern tribes, buying gold for wedding ceremonies is an established tradition, and people are inclined to continue this practice amid decreasing purchasing power due to the coronavirus disease outbreak and devaluation conditions in the country,” he told Arab News.
However, according to Kumcuoglu, the ongoing economic challenges, and especially skyrocketing inflation, could push some people to produce counterfeit gold in the future.
Turkey’s central bank became the world’s biggest official-sector buyer of gold in June, according to International Monetary Fund figures. In a bid to support the Turkish lira amid currency concerns, the bank increased its reserves by 890,000 ounces to a record level of 21.28 million in May.
As per the figures published by the World Gold Council, total central bank gold purchases were 139 tons in the first four months of 2020, with the lion’s share of these, 111 tons, coming from Turkey.