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Anger About Iran's Rial's Plunge
Iranians are protesting and causing mass disruptions in Tehran about the plunge that the Iranian rial has taken. Riot police are out in force controlling the angry merchants at its huge bazaar. The Iranian rial has lost 40% of its value against the dollar requiring an extraordinary amount just to equal one US dollar. This collapse is not just a result of the sanctions, but Iran's mismanaged economics and its sending billions of dollars to Syria to prop up its ally. This alone infuriates the common citizen because they they billions are sent to Syria yet their own government tells the public that there is no money for them. They wonder why.
To protest, merchants have closed their stores. They are publicly expressed there outrage as police try to arrest and quell the unrest. The merchants are not the only ones, but even the shoppers are angry because the price of simply things are outrageously high. Store managers complain that they are receiving many bad checks for items and this causes a ripple effect.
Iran's president, Ahmadinejad, went on TV to ask people to sell their rial's for other currency and accused the USA for the recent plunge that is causing psychological panic among its public. The currency dropped about 18 percent on Oct. 1, reaching 35,000 to the dollar on the unofficial market. The currency traded at 36,100 on Oct. 3. Inflation is at 30%, everything has doubled in price in a very short amount of time. While the official exchange rate is about 13,000 rials to a dollar by Iran's Central bank, few Iranian's are able to get that rate. Iranians are simply buying less and making things last longer. The only Iranians not hurt seem to be the wealthy.