Sunday, September 9, 2012

The U.S. at Work: Screwing the Average Iranian; Iran Currency Dives to Record Low

Iran's currency slid this morning to a new record low against the dollar, with the central bank saying it was trying to manage the plunge amid an "economic war with the world," reports the Daily Star.

This certainly indicates that U.S. led sanctions are causing severe hardship for the people of Iran. Prices must be soaring for imported goods (to the degree goods are being imported at all) It's hard to see how it is doing anything else.

Traders were exchanging one dollar for more than 24,000 Iranian rials.

That was a plunge of some five percent over Saturday's rate and around 10 percent since last Wednesday, when President Mahmoud Ahmadinejad admitted on state television that Western sanctions were causing "problems" in exporting oil and international financial transactions.

The latest street rate was nearly double the fixed, official rate of 12,260 rials that the government reserved for its agencies and a few privileged businesses.

Iran's rial has lost around half its value this year. It plummeted in January after the European Union and United States announced draconian sanctions that came into effect in July.


  1. And now, U.S. gov wants to bomb Iranian civilian infrastructure (just as they did to Iraq in 1991, which along with sanctions, no-fly zones, a million deaths, widespread anti-Americanism, led to 9/11).

  2. "This certainly indicates that U.S. led sanctions are causing severe hardship for the people"

    Perhaps. How did you disentangle the effects of sanctions from those of nationalized currency, fiat currency, fractional reserve banking, and other money and banking games played, perhaps, by the Iranian government, too?

    Also, it might just be that Iran, too, has its neo-mercantilists. If so, is it unreasonable to expect that some of them would welcome sanctions for a variety of reasons? Or even encourage their government to provoke them?

  3. Just another day, making the world safe for Democracy.