You might think “that’s a bit quick,’ but it’s happened. Steve Hanke from John Hopkins university, who runs the Troubled Currencies Project alongside the Cato Institute, has decided that recent stability exhibited by the Iranian currency coupled with the weekend’s news of a possible international rapprochement mean the rial really doesn’t belong in his toxic list.
Here’s the recovery in the black market rate, tracking the progress of the P5+1 talks in Geneva. Sunday’s breakthrough saw the rial move from 30,000 IRR/$ to 29,000… Read more
Hyperinflation or not. Immediate collapse of the regime or not. This situation is scary if what is coming out of Iran is accurate.
This is from the FT’s Najmeh Bozorgmehr in Iran:
“Chi mikhad beshe?” – what is going to happen? – is the most common question Iranians ask each other. It is asked in taxis, grocery stores, hairdressers and in the queues to buy bread. No one, however, seems to know the answer.
Almost everywhere, the fall of the Iranian rial is being interpreted as a huge problem for the incumbent Iranian regime — one that could bitterly undermine economic stability in the country.
Ehad Mostaque of Religare Capital Markets, however, posits a different view. Read more
Iran’s new rial-ity is biting hard.
From Bloomberg (with our emphasis):
“Most of my customers just look at products behind the window and pass,” said Behrouz Madani,
What’s happening in the Iranian currency markets at the moment is getting pretty fascinating.
Via Reuters on Wednesday:
IRANIAN RIOT POLICE CLASH WITH DEMONSTRATORS IN TEHRAN OVER RIAL COLLAPSE – WITNESSES