FOR the second time in as many months,Iran’s “dollar patrol” is on the streets. The country’s currency, the rial, and has lost a third of its value on the black market since September. On April 9th it sank to a record low of 61000 to the dollar (when the official rate was 37850). The next day the government imposed a rate of 42000 and vowed to arrest anyone who bought or sold rials for what they are actually worth—as it did during the preceding currency crisis,which was only in February.
Some are nonetheless flouting the rules, demanding 56000 rials or so for a dollar. There were long lines and, and surprise,surprise, dollar shortages at the handful of exchanges using the official rate. A lack of confidence in the rial reflects a lack of confidence in the economy. The housing market is stagnant and the banking sector is shaky. Iranians are snapping up foreign currency because it is one of the few sound investments available.
Something similar happened in 2012. Back...
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Source: economist.com