Iranian Rial crisis worries people from deterioration of economic situation

With deep concern, the Iranians follow up on news regarding their national currency, as the Iranian Rial has lost more than one third of its value during less than one week. This crisis made them fear a new economic crisis, since this decline in the Rial value could lead to an economic inflation, higher prices and harder living conditions.                  

Given that the Western States have imposed an embargo on Iranian oil and the Iranian Central Bank, this has made it more difficult for the Dollar to enter Tehran for exports. In this context, the government is discussing measures to avoid storing money in foreign currency, despite many challenges hindering its way, particularly internal speculators.  

The speculators complicated the economic equation in Iran, as they encouraged some people to trade with their money and convert it to Dollar and then selling it when the prices increase. This fact has worried other people from further deterioration, leading them to increase their demand for the dollar.                    

These facts keep the Iranian citizen concerned over the deterioration of the living conditions and over the fact that the traders will not accept to exchange money according to the official price fixed by the state.

For full LBCI report, please click on the video above