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Rial holds steady (albeit worthless) this past week

But the stability may be deceptive.  At 18,000 rials, the open market rial has lost half its value versus the official rate of 12,260 rials to the dollar.

Such a massive spread is generally not considered sustainable.

The regime, meanwhile, continues to pursue sustainability by resorting to coercion against money changers and such gimmicks as forcing travelers to change their money only at the airport after they have gone through immigration.

The real threat doesn’t come from currency transactions on the street, which are small potatoes economically, but from soaring prices.

The disorientation the market means many importers have had to pay a fortune to get the foreign exchange they need to do business and prices in public markets are showing the impact.  Reuters said bread prices have tripled since December, even though Iran produces most if its wheat needs.

In fact, the regime pushed uneconomic planting of wheat in order to isolate the country from the international market and be able to hold bread prices down.  That hasn’t worked.

Rice, which is a normal part of the diet for most Iranians, is now out of reach for many citizens as it costs $5 a kilo.

Iraq, meanwhile,  has instituted new foreign currency procedures in an effort to stop agents for Iranians and Syrians who are believed to have besieged banks in recent weeks.  Iraq’s daily foreign currency sales have doubled over the last three months, the Iraqi Central Bank reports.

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