That’s an increase of more than 20 percent since the protests in mid-September this year, according to forex brokers. They fear that the Iranian rial will fall further in value in the coming weeks.
In connection with the nuclear dispute, Iran was already in an acute financial crisis before the protests. However, there was hope that the economy could recover with an agreement in the nuclear negotiations with the West. In that case, Iran could resume its oil exports – the country’s main source of income – and also regain access to its escrow accounts abroad.
But after the uprising against the Islamic system over the past two and a half months and the ruthless suppression of the protests by the security forces, an agreement is still a long way off. Both the US and several European countries have not only condemned Iran in the strongest possible terms for human rights violations, they have also imposed new sanctions. Especially with the recent execution of a demonstrator – and other planned executions – Iran must reckon with further political and economic isolation, according to observers.
(SDA)