Currency Devaluation

Iran Protests Intensify Amid Brutal Crackdown and Internet Blackout

Protests erupted in Iran after a currency devaluation sparked demonstrations that quickly grew to encompass nationwide dissent. As crowds chanted against the supreme leader, security forces responded with violent crackdowns, including live fire and raids on hospitals. The government shut down the internet and foreign communications, while reports emerged of widespread killings and mass arrests, with human rights groups documenting hundreds of deaths. Despite the brutal repression, demonstrations continued, fueled by calls for regime change and support from diaspora figures, while the international community watched and the US hinted at possible military intervention.

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Argentine Peso Plunge: Doubts Mount Over US Rescue Plan

Despite efforts by the US Treasury Secretary to prop up the Argentine peso, including interventions and potential financial aid, Argentines remain unconvinced, leading to continued dumping of the currency. These interventions, while initially providing temporary relief, have pushed short-term interest rates to unsustainable levels and have not restored faith in the peso. With an upcoming election potentially impacting President Milei’s free-market agenda, the market anticipates a devaluation, as the current exchange rate does not reflect Argentina’s inflation, and capital flight persists. Experts suggest that a devaluation is seen as inevitable, with the size of the decline potentially dependent on election outcomes.

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