An Iranian moneychanger: Through a combination of sanctions

and mismanagement, the Ahmadinejad is struggling to deal with

an alarming drop in the nation's currency: 40% in the last week,

80% in the last year.



'Enemies' Responsible for Rial Plunge; Stone to be Thrown Back at West (Kayhan, Islamic Republic of Iran)


Does the open unrest experienced in Tehran yesterday reflect a growing challenge to the Iranian regime? According to this news item from Iran's state-run Kayhan, Iranian officials characterized the collapse of the nation's currency as a 'stone' that must be flung back at the 'enemies' - who have mounted a 'clandestine, vast and heavy war' against the country.


October 4, 2012


Islamic Republic of Iran - Kayhan - Home Page (English)

Minister of Economic Affairs Shamseddin Hosseini: In response to the rial's monumental collapse, he says the government will stamp out all open trade of currency.


BBC NEWS VIDEO: Sanctions and Iran's currency, Oct. 3, 00:03:58RealVideo

TEHRAN: On Wednesday, Minister of Economic Affairs Shamseddin Hosseini said that Iran is working to shrink and eventually eliminate the free trade in its currency, the rial.


"The unofficial currency market will be tightened," the Mehr News Agency quoted Husseini as saying." Step by step, a foreign exchange center is being constructed, and its development will eventually lead to the elimination of the tricksters' market."


Husseini was speaking after the rial plunged to record lows against the U.S. dollar on Tuesday, losing about a third of its value in a week.


The rial hit a record low of around 37,500 to the dollar in open trade on Tuesday, from about 24,600 just eight days earlier, foreign exchange traders in Tehran said.


On Wednesday, Mehr reported that the open-market rate had opened at 36,100.


The rial has been falling for over a year and has lost about two-thirds of its value since June 2011. In an effort to stabilize the currency, the government last week launched an "exchange center" to supply dollars to importers of essential goods.


The Central Bank issued a statement that the center supplied only $181 million in its first week, not nearly enough to satisfy demand.


But Husseini said that the authorities would use the center to replace the volatile free market, which the government says has been manipulated by speculators. According to Husseini, about $100 million per day is now traded at the government-backed center.




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On Tuesday, President Mahmoud Ahmadinejad insisted that Iran's economic underpinnings were sound, and blamed the rial's tumble on "psychological pressure" from sanctions and currency speculators.


He described sanctions as part of a "heavy battle" that has succeeded in driving down oil exports "a bit."


“A clandestine, vast and heavy war has been waged against Iran on a global scale … and our colleagues at the Central Bank and other relevant bodies are working hard to find solutions … this is a real battle,” Ahmadinejad told a press conference.


Referring to Iran's currency market, the president said, “Fluctuations in the foreign exchange market didn't begin today. The market has been fluctuating for some time, and have only gathered steam recently.”


Ahmadinejad said that the enemies have imposed embargos on Iranian crude oil exports and bank transactions, making it difficult for the Islamic Republic to sell oil, since this is the country’s most important revenue source.


The president emphasized that Iran would make up for this brief decline in its oil exports triggered by enemies.

Posted by Worldmeets.US


“Keep in mind that this is a battle. The enemy imagines that it can shatter the will of the Iranian nation by applying such pressures, and they may even seek to apply new ones.


“The pressures are not exerted on governments alone, but on nations as well. All of these measures constitute psychological warfare, and certain decisions have been taken. Of course, our people are calm. The enemy has thrown a stone at us. Now we have to lift it and throw it back at them.”



The Telegraph, U.K.: Iran in Grip of Currency Crisis as Trading Stops  

The Telegraph, U.K.: EDITORIAL: Iran's Self-Destruction

The Telegraph, U.K.: Iran Sanctions Bite as Protests Hit Tehran Streets

Kayhan, Iran: The Mahdi is Reappearing to Rid World of 'Devils in Human Form'  

Die Welt, Germany: Ahmadinejad Announces Iranian Plans to 'Administer the World'

Iraq of Tomorrow, Iraq: Ahmadinejad Told to 'Corroborate' American Threat to the 'Mahdi'

Kayhan, Iran: Ahmadinejad: Egypt Revolution Reveals Hand of the 'Mahdi'

FARS News, Iran: Khamenei: Muslim Hatred of the 'Enemies' is a 'Wonderful' Thing

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DE TIJD, Belgium: Americans Mistaken to Buckle Under on Free Speech
Der Standard, Austria: For Now at Least, it's Lose-Lose for the U.S. in the Muslim World
Al Watan, Libya: If the Prophet Can be Insulted, then the Holocaust can be Questioned
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Der Spiegel, Germany: Muslim Protests Show Limits of Free Speech
Frankfurter Rundschau, Germany: Islam in Turmoil: Religion as 'Ersatz-Identity'
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Global Times, China:
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Telegraph, U.K.: Arab Spring Turns Sour for United States
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[Posted by Worldmeets.US Oct. 4, 5:57am]


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