Courtesy of Mish.
Inquiring minds note that Iran removes euro and dollar from its trade exchanges.
Minister of Economic Affairs and Finance Shamseddin Hosseini said Monday that Iran would no longer use euro and dollar in its trade exchanges according to a decision made by the government’s economic working-group. Iranian state news agency IRNA writes about this.
“Iran’s government is determined to remove euro and dollar from its foreign trade and is to change its foreign trade pattern,” said the minister while speaking to reporters at the end of a meeting with the representatives of the Economic Cooperation Organization (ECO) member countries.
Symptoms of Hyperinflation
Iran removed the Euro and dollar from its foreign trade patterns not because it wished to do so, but rather because it has no euro or dollar reserves it can use.
Regardless of its official statements on trade, euros and dollars are hoarded by Iranian consumers in the black market.
I spoke about the inflation nightmare in Iran on October 4, 2012 in Hyperinflation Hits Iran; Monthly 70% Inflation Rate; Reflections on Economic Warfare. Here are a few snips:
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.
Monthly 70% Inflation Rate
Steve Hanke, Professor of Applied Economics at Johns Hopkins University, has also been following the Iranian currency crisis. He pinged me with these thoughts yesterday.
Hello Mish
For months, I have been following the collapse of the Iranian rial, tracking black-market exchange-rate data from foreign-exchange bazaars in Tehran. Using the most recent data, I now estimate that Iran is experiencing a monthly inflation rate of nearly 70%, indicating that hyperinflation has struck in Iran.
Cordially,…
