Security forces used tear gas and batons against demonstrators angered by a dramatic collapse in the national currency, the rial, which has lost about a third of its value against the US dollar since Sunday. The hour by hour decline of the currency provides vivid evidence of the damage wrought by international sanctions, which were imposed because of Iran's nuclear ambitions.
Protesters smashed shop windows and attacked banks after areas of the bazaar filled with moneychangers were closed. Numerous arrests were reported as protests spread out of the bazaar in central Tehran and into neighbouring areas.
Behind the rial's decline lies a precipitous fall in Iranian oil exports, which have dropped from about 2.5 million barrels per day last year to 1.1 million barrels in August, according to the International Energy Agency. This has deprived Iran of billions of dollars of revenues and exposed the regime's failure to avoid the damage caused by sanctions. "There is a perception that Iran is ahead of the game, anticipating what is to come and planning elaborate counter-measures to deal with economic sanctions. This is untrue," said Nigel Kushner, chief executive of W Legal, a law firm specialising in sanctions compliance.
"My view is Iran is like a rabbit glaring at the headlights of an oncoming juggernaut. It is reacting too late and in a half-hearted manner."
The collapse of the currency reflects a general loss of public confidence. The anti-government website, Kalemeh, cited eyewitnesses accounts that demonstrators demanded the overthrow of President Mahmoud Ahmadinejad. » | Robert Tait, David Blair | Wednesday, October 03, 2012
THE GUARDIAN: Iran's currency hits all-time low as western sanctions take their toll: Rial sent into tailspin in spite of Ahmadinejad's defiance as Iranians rush to convert assets to foreign currency or gold » | Saeed Kamali Dehghan and Julian Borger | Monday, October 01, 2012
