Iran’s rial continues its death spiral which started in earnest Saturday after being on a steady slide since April, now hitting a historic low this week. Over the weekend the rial took a stunning 12.5% dive, falling from 98,000 IRR/USD on Saturday to 116,000 IRR/USD by the close of Sunday. As Forbes suggests this kind of classic death spiral hasn’t happened since September 2012.
But even more unusual is that Iran’s elite Islamic Revolutionary Guard Corps (IRGC) has just published a confrontational statement addressed to President Hassan Rouhani, urging him to prop up the falling Rial ahead of US sanctions implementation.
“The unique and extensive backing you benefited from in past weeks shouldn’t preclude you from taking revolutionary actions to control prices and prevent the enormous increase in the price of foreign currency and gold,” IRGC commander Mohammad Ali Jafari said in an open letter to Rouhani, published by the privately owned Tasnim news agency. “Decision-making in today’s difficult circumstances necessitates revolutionary determination and decisiveness in dealing with certain managers’ weaknesses.”
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