Iran Snapshot: Why Luxury Car Sales Do Not Mean an All-Is-Well Economy (The Economist)
Cars have become even less affordable for the poor. But middle-class Iranians buy them as investments as cash savings lose value because of inflation and the currency collapse. Iranians with government links are making a mint. At the end of 2011, after a run on the currency, officials fixed the exchange rate at 12,260 rials to the dollars to help importers. Three months ago this was cut to 24,368 rials. But only importers with government connections can get cheap dollars. They buy cars across the Persian Gulf, then sell them at home at the unofficial exchange rate of 37,000 rials.