MESOPOTAMIA NEWS : CHINESE CURRENCY WITH MAO-TSE-TUNGS PICTURE NOW FAVORED BY IRANIAN MULLAHS
TEHRAN Central Bank — We’ll Use Chinese Currency and Erase Dollars
21 Aug 2018 – By Scott Lucas – eaworldview – Iran’s regime has declared that it will deal with its economic difficulties by using Chinese currency. On Monday, the Central Bank removed the US dollar from its currency rate website, and replaced it with the Chinese yuan. The site also erased the dollar from its archives.Since January, the rial has fallen almost 60% against the dollar, including a 35% drop over 48 hours in July. Already at a historic low of 45,000:1 at the start of the year, it stands this morning at 105,100:1.
The devaluation has fed a resurgence of inflation, which the Rouhani Government had brought down to single digits from a high of more than 40% in 2013. Iran is also struggling with production, trade, investment, employment, and environmental damage, amid long-term internal problems and expanding US sanctions.
The Government has been unable to stem the slide despite increases in savings rates and arrests of unofficial currency traders and some officials — including the Deputy Head of the Central Bank — as “economic corruptors”. In recent weeks, the head of the Central Bank has been replaced and the foreign exchange markets have been restructured.The move to the yuan is unlikely to have a significant effect. Despite China’s size, the yuan is not a global currency, with most trade — including in oil — denominated in US dollars.
In February, in another symbolic but ineffective step, the Government switched from the dollar to the Euro as Iran’s official reporting currency.
Supreme Leader: US “Satanic Policy”
Addressing Iranian pilgrims going to Meeca for the hajj, the Supreme Leader did not address the economic situation.
Instead, he berated Washington: Look at the behavior of the arrogant and criminal US today. Its main policy against Islam and Muslims is to stoke wars. Its desire and vicious effort is that Muslims massacre each other….[It seeks[ to pit some oppressors against the oppressed, support the oppressors, and have them ruthlessly crush the oppressed and always stir up the flames of this atrocious sedition.