And by a reset on currency I mean a reset on the value of their currency. Take Iranian rial for example, their exchange rate is 371,992 to a single U.S. dollar. Could a rial ever have a 1:1 ratio without ever collapsing? I obv not a finance bro
In: Economics
A government could issue new currency, and just say “1 new riall is worth 100,000 old riall”, but that wouldn’t change the value of the currency. The US sanctions make it extremely hard for Iran to export goods, which means no one is buying riall. If that trade isolation ended, Iran could hypothetically grow its economy (or the US dollar could *lose” value) to increase the exchange rate
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