Iran Rial has lost 1/3 of its value

by Wadsam | October 4, 2012 4:34 am

[1]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?

Endnotes:
  1. [Image]: http://dev.wadsam.com/wp-content/uploads/2012/10/currency.jpg

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