The buried lede in today’s news seems to be the rapid collapse of the Iranian rial. The official central bank peg is currently USDIRR 11,240, but the black-market rate has been slowly ticking higher for months – and in the last few days, the collapse has accelerated.
The black-market rate was already north of 17,000 a couple of weeks ago, according to Reuters, and reports from inside Iran are saying that the rate has skyrocketed from 18,000 last Wednesday to 20,000 on Saturday and 23,000 on Monday. (This may ring some bells for long-time readers.)
I wouldn’t be entirely surprised to find that Mahmoud Ahmadinejad is running the printing presses Gideon-Gono-style – and I think the reason Iran’s ratcheting up the anti-sanctions rhetoric is that their economy is imploding.
This could get quite interesting.