Posted on 05/04/2018 12:39:21 PM PDT by detective
The sharp decline in the value of the Iranian currency is causing upheaval in the Iranian economy, and challenging the government and the banking sector. The local currency’s plunge to a rate of 6,000 tomans to the dollar, despite the high level of oil and gas revenues, reflects a lack of trust between the citizens and the banking system. A consideration of Iran’s economic policy sheds light on the limitations of the “dual economy” practiced by the Islamic Republic since its inception.
At a time when Iran’s moves in the geopolitical sphere are getting the lion’s share of public attention, economic processes are occurring that will bear consequences for the power of the Islamic Republic. The recent sharp decline in the value of the local currency against the dollar reflects the severity of Iran’s economic plight. When the local currency plummeted to below the benchmark of 6,000 tomans to the dollar, currency trading came to a halt. The efforts of Iran’s central bank to stabilize the rate at 4,200 tomans failed, prompting the closure of the currency conversion market.
A look at the local-currency exchange rate in the early days of the Islamic Republic highlights the dire straits of the currency relative to today’s global market. In the wake of the revolution, the Iranian currency’s exchange rate stood at seven tomans to the dollar, while on the free market the dollar was traded for ten tomans. It is no surprise, then, that the recent plunge in the currency’s value and the distrust between the citizens and the banking system have led some members of parliament to demand the immediate dismissal of Valy Allah Seif, the president of the central bank.
(Excerpt) Read more at algemeiner.com ...
They are also destroying Iran's economy and bankrupting the once prosperous country.
It appears that the billions of dollars the Obama administration illegally gave Iran is the only thing sustaining their economy.
War is costly.
No. The 1.2 billion in hard currency cash that Obama gave to the mullahs is used to pay their goons and thugs. They demand hard currency for their brutal labor. The vile Obama knew why the mullahs wanted hard cash and he complied.
HaHaHa. Well simply raise the hell out of taxes, right?
That’s the first rule liberal fascist economic thinking
Well they ain’t Venezuela....... Oh.
The only question about Obama at this point, is where do you place him on this scale:
K - 12th grade
For me it's about: K 1 2 3 4 5 6 7 8 9 10 11 12
The Iranian economy is corruptly centralized in the hands of political insiders and their cronies, who have stripped the assets out of the Iranian banking sector.
Their banks are now a house of cards. A currency collapse, and/or re-imposition of sanctions in the wake of a US pullout from the nuclear deal (JCPOA), could well bring down their banks, and bring the the population back out into the streets with a vengeance.
Although the Revolutionary Guards (Pasdaran) and their hired/imported thugs (Basij) will attack the citizenry, the regular military probably will not. There are not enough Guards and Basiji to contain a widespread revolt, and many are tied up in Syria.
I think that Iran is starting to get a full court press. Regime members and cronies should start seriously looking to get their families and assets abroad.
Ping.
The Islamist terrorists who run Iran are not only financing terrorism and threatening to destroy Israel, the U.S. and other countries.
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It is only a threat as long as you ignore their intent. They intend to bring all of humanity to paradise ... how does not matter.
Could we imagine Iran regime collapsing within the Trump era?
“Could we imagine Iran regime collapsing within the Trump era?”
Absolutely a possibility. Even this year.
This is great news. I hear that the US government has now instituted new rules in banking that require banks to operate in transparent ways to prevent money laundering and funding of terrorists.
If you don’t comply, you don’t do business with the US. Maybe this is working for us.
The $1.2 billion in hard currency was just one plane load! Obama released a hold on $150 Billion held in US Banks.
At, “6,000 tomans to the dollar” I doubt Allah could work that out.
If the Mossad is able to drive a truck full of documents out of a Teheran warehouse, they also are able to print gazillions of totally authentic-looking Iranian tomans and dump them all over the country.
So I gotta wonder if a big dose of hyper-inflation can make the Mullahs sweat?
It’s up to China. They’re supporting Iran’s economy.
I think China would like more reasonable economic policies from Iran.
China’s buying Iran’s debt and oil, investing in huge projects there.
The Mullahs already spent the billions Obama gave them.
One thing stands out in the alliance of Iran, Russia and China: only one of them is rich.
If the Mossad is able to drive a truck full of documents out of a Teheran warehouse, they also are able to print gazillions of totally authentic-looking Iranian tomans and dump them all over the country.
...
That was my thought. It’s not unusual to counterfeit the currency of the enemy.
Thanks.
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