Free Republic

Last week, the Iranian rial continued its historic slide, falling to a record low against the U.S. dollar. Over the course of the week, the price of one dollar in Tehran rose from 34,200 rials to 37,500 -- a 10% drop in the rial's value. In fact, the currency has lost 75% of its value in one year. In late 2011, the price of the dollar was 13,000 rials. The latest slide in the value of the rial may well have been expected given recent trends, but the severity and speed of the drop surprised many... prices in Iran have...

Contrary to reports, there is no hyperinflation in Iran right now at all. In fact, the Western sanctions imposed on Iran's oil trade are failing miserably to meet their objectives. And a regime collapse – or even, coming short of that, another popular uprising reminiscent of June 2009 – seems further away from Iran than ever. Meanwhile, the Iranian regime is using the current sanctions imposed against it by the West as a weapon to weaken its own fiercest domestic threat – the educated, relatively pro-Western Iranian constituency that comprises the middle class.

The oil embargo against Iran has worked, assuming one defines "work" as a destruction of the Iranian riall which has fallen 33% in a week, 57% in three months and 75% in a year vs. the US dollar. On Wednesday, the Tehran bazaar closed in turmoil and police used teargas and batons on demonstrators protesting the currency crisis. Please consider Iran currency crisis sparks Tehran street clashes Hundreds of demonstrators in the Iranian capital clashed with riot police on Wednesday, during protests against the crisis over the country's currency. Police used batons and teargas to try to disperse the crowds....