Iran’s Policy to Stem Currency Decline Backfires

The Iranian central bank’s efforts to stem the rial’s decline and stamp out the currency black market have backfired, undercutting President Hassan Rouhani’s case that he can parry the U.S. war on the Iranian economy.

Rather than choking off the illegal transactions, the introduction of a fixed exchange rate in April has encouraged some traders to profiteer by charging higher black market prices for goods they imported with dollars bought at the lower official rate, officials say. Ordinary Iranians are up in arms over the enrichment of wealthy businesses while they’re being squeezed financially by the looming Nov. 4 renewal of U.S. sanctions.