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Iran riots as currency collapses

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  • Iran riots as currency collapses

    Riots erupt in Tehran over collapse of Iranian currency | euronews, world news

    Demonstrations reached boiling point at the main bazaar in Tehran – the centre of trade and foreign exchange dealing.

    Images from an unverified amateur video show protesters angry at the collapse of the rial, the Iranian currency.

    Its value has plunged to record lows against the dollar.

    Reports indicate tear gas was used and that there were arrests.

    The central bazaar – whose merchants played a major role in Iran’s revolution of 1979 – was closed on Wednesday.

    Western economic sanctions imposed over Iran’s disputed nuclear programme have hit the country’s earnings from oil hard.

    With Iran’s official inflation rate at around 25 percent the currency weakness is hurting living standards.

    There has been a run on trading in hard currencies pushing down the rial. The government has blamed speculators for the currency collapse and have reportedly ordered security forces to take action against them.
    FYI this week or was it last week the real lost 40% against the dollar I think. Anyway about 5-6% a day thus far which is kinda a lot if you annualized it.

    BBC News - Iran currency crisis: Sanctions detonate unstable rial
    Iran currency tumbles 17% in one day to new low - Yahoo! Finance UK
    http://agonist.org/sanctions-cause-i...-riots-follow/

    Sanctions Cause Iran Currency Collapse, Riots Follow
    By Steve Hynd, on October 3rd, 2012

    As Daniel Drezner writes, “it turns out that the sanctions against Iran really are crippling”. The Iranian Rial has plummeted in value by 57% of its value in the past three months and 75% in comparison with the end of last year and Ahmadinejad has blamed Western sanctions which have drastically cut back Iran’s oil exports for the crisis. The currency crisis has halted trade with Turkey and led to riots in Tehran.
    Originally from Sochi, Russia.
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