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Thursday, April 12, 2018

The Iranian Economy Is In Shambles

IRAN

Dollars and Sense

As widespread panic threatens to cause a collapse in its currency, Iran is scrambling for solutions – and pointing fingers.
“Enemies outside of our borders, in various different guises, are fueling this issue and are going to some effort to make conditions tougher for the people,” Bloomberg quoted central bank Governor Valiollah Seif as saying Tuesday. Officials in President Hassan Rouhani’s government say his conservative opponents are fueling the plunge to discredit his administration.
Rouhani won office on a pledge to resuscitate an economy hampered by international sanctions, and succeeded in stabilizing the rial before inking the nuclear deal that allowed Iran back into the global economy. But the returns have been slow to materialize, and now the nuclear deal is under threat.
The rial plunged 35 percent earlier this week, prompting the government to mandate an official rate of 42,000 rials to the dollar and send riot police into the bazaars to arrest black-market money-changers on Wednesday, the New York Times reported.

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