Monday 8 October 2012

Iranian rial-ity, or when Gresham’s law goes awry | FT Alphaville

Almost everywhere, the fall of the Iranian rial is being interpreted as a huge problem for the incumbent Iranian regime — one that could bitterly undermine economic stability in the country.

Ehad Mostaque of Religare Capital Markets, however, posits a different view.

He says the dollar shortage in the “parallel” street market is actually leading to more dollar inventory being soaked up by the “official” market, improving the sector’s hold over the economy.

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