| Submit your comments on this article |
| Syria-Lebanon-Iran |
| Iran, Get Ready for the Battle Rial |
| 2018-05-22 |
| h/t Instapundit [DefendDemocracy.org] Secretary of State Mike Pompeo on Monday presented the Islamic Republic of Iran with a stark choice: Either change or face "unprecedented financial pressure" in the form of "the strongest sanctions in history when we are complete." The Trump administration has declared financial war on the Iranian regime. Given the seriousness of its currency emergency, it’s a good bet America will win. Iran’s economy is in crisis. Inflation is skyrocketing, banks are in turmoil, and Iranians protest daily against the regime’s ineptitude, corruption and foreign adventurism. The currency is collapsing. In 1979, just before the Islamic revolution, Iran’s official exchange rate was 70 rial to the dollar. Today’s official rate, 42,000 to 1, is only available to those with regime connections. Most Iranians have to accept less favorable terms on the black market. The rial experienced several waves of devaluation, including during the last ramp-up in U.S. sanctions. The black-market rate per dollar went from around 11,000 in early 2011 to close to 37,000 in 2013, immediately before the June election of President Hassan Rouhani. The latest deterioration signals a worse crisis. It was triggered by Mr. Trump’s decision in October to decertify the Joint Comprehensive Plan of Action, or JCPOA, indicating his intention to reimpose sanctions. The black-market rate has settled at 63,500, a nearly 40% loss of value since October. It dipped to 70,000 in the 24 hours after Mr. Trump announced on May 8 America’s official withdrawal from the nuclear deal. The regime is so desperate to avoid further collapse, it is taking extreme measures like criminalizing private currency trading and severely restricting the amount of currency Iranian travelers can take out of the country. |
| Posted by:g(r)omgoru |