Tehran, Oct. 3 (ANI): The Iranian government has threatened to turn its security services on speculators after the Iranian Rial plunged by 10 percent against the U.S. dollar.
The Iranian Rial has lost almost a third of its value since Sunday, providing vivid evidence that international sanctions are biting deep into the country's economy.
Iran's Industry Minister Mehdi Ghazanfarim blamed the headlong decline on brokers pursuing the increase in price, because for them, it would be profitable.
Ghazanfarim said: "Security Services will control the branches and sources of disruption in the exchange market."
According to The Telegraph, the authorities have consistently denied that Western sanctions imposed because of Iran's nuclear ambitions, are causing any real damage.
They maintained their stand even as the Rial fell to about 38,500 to the dollar yesterday, compared with 29,500 on Sunday.
President Mahmoud Ahmadinejad said Iran was the victim of a 'psychological war' and promised that his government would not yield to pressure over its nuclear programme.
According to the report, Paola Subacchi, the head of International Economics at Chatham House, a think tank on international affairs, said the currency's collapse would have been caused by a sudden loss of public confidence.
"Confidence is linked to the fundamentals: how well the economy is doing and how well the government is managing the economy," she said.
"It's a big political statement. It's a way of saying to the government 'we don't believe that what you're doing is good for the economy'", she added. (ANI)
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