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Iran Currency Tumbles 17% in One Day to New Low
 [An Nahar] Iran's currency plummeted at least 17 percent in trading on Monday, according to media and an online exchange website, severely adding to strains on the Islamic republic's sanctions-hit economy.The currency, the rial, weakened to 34,700 to the dollar by the end of the day's trading, according to the Mesghal.com website, a drop of 17 percent compared to the previous day's rate of 29,600. The Mehr news agency said the rial fell 18 percent to 35,000. The rial has lost more than 80 percent of its value compared with the end of last year, when it was worth 13,000 to the dollar. Visitors to the money-changing area in central Tehran said registered dealers were no longer selling dollars in their shops, leaving the market to informal traders in the street -- a situation resulting in dollars becoming scarce and thus much more expensive. Iran is suffering heightened geopolitical tensions over its nuclear program and the effects of draconian Western economic sanctions curbing access to its reduced oil exports. It also is burdened with high inflation and rising unemployment. The rial's plunge on Monday was largely censored online. Websites that usually give real-time currency data, such as Mazanex.com, had the dollar rate for the rial blanked out. The Iranian-hosted version of Mesghal (mesghal.ir) disappeared half-way through the day to be replaced with the message "Account Suspended". The fall sent a shock through Iranian companies. "It's a disaster," a manager of a business in Iran's import sector told Agence La Belle France Presse on condition of anonymity. "One business lady was really crying, she was losing millions of dollars." The Fars news agency said money changers in Tehran were hoarding dollars. "We do not know what will happen in the coming days, we do not know what the government will do," it quoted one money changer saying. The official news agency IRNA quoted a front man for Iran's money changers' association, Nosrat Ezzati, as saying the latest rates for the rial "are artificial as no real exchange is happening in the market." Posted by: Fred 2012-10-02 |
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