English | دری

Iran Rial has lost 1/3 of its value

in International Business

Iran Rial has lost 1/3 of its value

Protesters took it to the streets, expressing their angers at the plunging of the Rial currency. Foreign exchange dealers, some with license and some without, were lined up on the two sides of the roads.

Iranian riot police officers clashed with demonstrators and foreign exchange dealers in the capital Tehran over the collapse of the country’s currency, which has lost a third of its value against the dollar in a week.

Protestors were shouting slogans against President Mahmoud Ahmadinejad, saying his economic policies had fueled economic crisis.

Amid sanction imposed on Iran’s disputed nuclear program, the rial has been plunging to records lows against the U.S. dollar.

The weak currency is pushing Iranian to buy hard currencies, pushing the Rial even further. The country’s inflation is running at around 25%, hurting people’s living standards and causing job losses.

The instability of the currency has prevented merchants from quoting accurate prices, causing the shopkeepers to shut down their shops.

People now find meat a luxury and turn to bread to feed their families.

The economic situation has “reached a point where it becomes almost impossible not to show reaction,” said Anoush Ehteshami, professor of international affairs at Durham University in the U.K.

Is it yet time for the Iranian government to bow to the sanctions and halt the nuclear program or will it continue to put the citizen’s life at stake?



Related Articles

EU working on new sanctions against Iran

British Foreign Secretary William Hague stated that European Union is putting together a new set of sanctions to increase pressure

A senior official reveals Bank of England’s EU exit project in an email

A senior official of the Bank of England inadvertently sent details of a confidential project on the United Kingdom (UK)

Italy’s economy shrinks more than estimated

Italy’s recession is deeper than first estimated, with economy shrinking by 0.8% between April and June, compared to the 0.7%

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.