This is a real currency war

by pdxblake

Back in February, I wrote about why the “currency war” argument is over-used and how aggressive central bank actions is not a currency war.  Now, I have an example of what a real currency war is from the :

The US has unveiled fresh sanctions against Iran, targeting its currency, as it increases the pressure on Tehran to abandon its nuclear programme. These include penalties on anyone facilitating “significant” transactions in the rial or holding significant amounts of the currency outside Iran. A US official said the move would force institutions to dump rial holdings and weaken the currency further. This is the first time the US has directly targeted the Iranian currency.

This promises to make Iran’s weak currency, even weaker and more volatile,” the US official was quoted as saying. “The idea here is to make the rial essentially unusable outside of Iran.

Ben Bernanke, you are not a currency warrior.