Latest news right now is that the Sanctions are truly starting to bite … the BBC reports …
Iran’s beleaguered currency, the rial, has fallen to fresh record lows against the US dollar, according to media reports coming out of the country.
The rial fell a further 9% on Tuesday, following Monday’s 18% decline, news agencies have reported.
The currency has reportedly lost more than 80% of its value since 2011 because of US-led trade sanctions.
Recent moves by Tehran to ensure key importers have enough dollars are said to have further weakened the rial.
Wow … 18% fall yesterday … and so far today another 9%. With their income from oil exports down by 45% this year, and also being locked out of the banking system, the degrees of pain being felt are increasing with each and every passing day.
What is happening now is that those who go to the money-changing area in central Tehran are finding that the registered dealers were no longer selling dollars in their shops. This leaves the market to informal traders in the street – a situation resulting in dollars becoming scarce and thus much more expensive.
They truly are on the road to a complete economic collapse … and of course, the official Iranian news agencies are strangly silent about it all.
It may indeed sound horrendous for the man in the street, where going from one day to the next they discover they cannot buy enough to eat, but pause and think … it is all a lot more palatable that the alternative … bombing them. How can we criticise Islamic extremists for responding violently to what they percieve to be an offensive movie, and yet advocate an violent response to rogue states who promote and export violence? Sanctions, real sanctions with some bite, as it turns out is indeed a far better alternative.
In many ways I’m relieved it is all happening so quickly, because if it had been too slow there was a real risk that Israel was prepared to go it alone and attack. That in turn would have led to an escalation and a potential counter attack that could have rapidly escalated and drawn many into a fire fight.
No, let us not consider that, but instead view this as possibly the best outcome, because such an alternative is simply unthinkable.