Iran: the Iranian regime is using the current sanctions imposed against it by the West as a weapon to weaken its own fiercest domestic threat

THERE IS NO HYPERINFLATION IN IRAN

The Real Story Is Much More Interesting

Matthew Boesler

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
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.

In this way, the economic warfare the West has waged against Iran to weaken the regime is actually amplifying the regime's control.

Before we get to that, though, we need to take a look at why there is no hyperinflation in Iran – because what is being confused as hyperinflation by outside observers and the press right now is actually the mechanism through which Iranian leaders are tightening their grip on Iranian society.

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• This chart has led many observers to confuse Iran's current situation with hyperinflation. 
• The fact is, though, that U.S. dollars aren't really an essential medium of exchange in the Iranian economy, and Iran still maintains control over the official exchange rate – closer to 12,000 rials per dollar – which dictates most day-to-day transactions.
• The Iranian regime is thus able to channel the most pain of the sanctions in whatever direction it chooses, while avoiding any of the ramifications of the sanctions itself.

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