Iranian traders and shopkeepers protest as currency hits record low
TEHRAN, Iran (AP) — Iranian traders and shopkeepers staged a second day of protests Monday after the country’s currency plummeted to a new record low against the U.S. dollar.
Videos on social media showed hundreds taking part in rallies in Saadi Street in downtown Tehran as well as in the Shush neighborhood near Tehran’s main Grand Bazaar, which played a crucial role in the 1979 Islamic Revolution that ousted the monarchy and brought Islamists to power.
Witnesses told The Associated Press that traders shut their shops and asked others to do the same. The semiofficial ILNA news agency said many businesses and merchants stopped trading even though some kept their shops open.
There was no reports of police raids though security was tight at the protests, according to witnesses.
On Sunday, protest gatherings were limited to two major mobile market in downtown Tehran, where the demonstrators chanted anti-government slogans.
Iran’s rial on Sunday plunged to 1.42 million to the dollar. On Monday, it traded at 1.38 million rials to the dollar.
The rapid depreciation is compounding inflationary pressure, pushing up prices of food and other daily necessities and further straining household budgets, a trend that could worsen by a gasoline price change introduced in recent days.
According to the state statistics center, inflation rate in December rose to 42.2% from the same period last year, and is 1.8% higher than in November. Foodstuff prices rose 72% and health and medical items were up 50% from December last year, according to the statistics center. Many critics see the rate a sign of an approaching hyperinflation.
Reports in official Iranian media said that the government plans to increase taxes in the Iranian new year that begins March 21 have caused more concern.
Iran’s currency was trading at 32,000 rials to the dollar at the time of the 2015 nuclear accord that lifted international sanctions in exchange for tight controls on Iran’s nuclear program. That deal unraveled after U.S. President Donald Trump unilaterally withdrew the United States from it in 2018. There is also uncertainty over the risk of renewed conflict following June’s 12-day war involving Iran and Israel. Many Iranians also fear the possibility of a broader confrontation that could draw in the United States, adding to market anxiety.
In September, the United Nations reimposed nuclear-related sanctions on Iran through what diplomats described as the “snapback” mechanism. Those measures once again froze Iranian assets abroad, halted arms transactions with Tehran and imposed penalties tied to Iran’s ballistic missile program.