For Tehran compromise is a sign of weakness... - Comment - Israel News | Haaretz Daily Newspaper
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    • allang
    • 07.01.12 | 08:18 (IST)

    The Iranian currency lost 25% of it's value in the last month alone. The downward spiral was so extreme... that Iranian economists banned the purchase of foreign currency. Their national bank had to inject massive liquidity to stabilize the rial. In fact, the Iranian rial went from an all time inflationary high of 17,800 to a 16,200 per/US dollar after the injection. Tehran's economy is so dependent on the sale of crude oil... that any further disruption could signal a complete economic collapse. The Ayatollahs and their financial fat-cats realize the economy is the 'Achilles heel' for the regime. But still 'compromise is a sign of weakness'... Khamenei said recently.

    from the article: West plans to tap oil reserves if Iran blocks Strait of Hormuz
    First published 07:16 07.01.12 | Last updated 07:16 07.01.12
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