Iranian rial collapses, 'loses 30% of value' - reports

Government attempts at distracting the public with threats against Israel do not go unnoticed, as small demonstrations and online comments return focus to harsh conditions

 A WOMAN walks past an Iranian flag painted on a wall in a street in Tehran earlier this week. (photo credit: Atta Kenare/AFP via Getty Images)
A WOMAN walks past an Iranian flag painted on a wall in a street in Tehran earlier this week.
(photo credit: Atta Kenare/AFP via Getty Images)

A sharp crash in the value of the Iranian rial was reported yesterday, with some sources reporting that one US dollar would now be worth over 660,000 Iranian rials in some unofficial markets, while others stressed the fact that the already weak currency suffered a blow leading to the loss of 30% of its worth overnight; despite the regime’s official digits showing no major changes.

One member of the Majles (the Iranian parliament) demanded to know from chair Mohammad Baqer Qalibaf what steps the authorities are going to take, calling on the parliament to meet with the governor of the country’s central bank, and wondering, “if we don’t have money – why are we printing more? And if we do have money – why is it so costly?” Qalibaf answered they are “aware of the situation and will hold meetings inshallah (Arabic: God willing),” sparking a wave of disappointed and sarcastic comments.

One social media user commented ironically: “oh you’re going to hold a meeting? Bulls**t,” while another user uploaded a video showcasing the rial’s loss of buying power, showing how a 50,000 Iranian rial banknote ($1.2) used to be enough to buy 30 eggs only a decade ago, while nowadays it suffices to buy only one single egg.

A man counts Iranian rials at a currency exchange shop before the start of the US sanctions on Tehran (credit: REUTERS/ESSAM AL-SUDANI)
A man counts Iranian rials at a currency exchange shop before the start of the US sanctions on Tehran (credit: REUTERS/ESSAM AL-SUDANI)

Economic demonstrations occur across Iran 

Several small demonstrations took place in different parts of Iran on the backdrop of the economic hardships in the past several days, including a farmers’ strike in eastern Isfahan who took their tractors to the streets protesting water-related measures, a protest of retired pensioners in Arak against the cost of living, a truck drivers’ demonstration in front of the local headquarters of the national petrol company in Sistan and Balochistan, Iran’s poorest province, protesting against the price of fuel, and a medical staff demonstration in Shiraz protesting their salaries not being paid on time. Additionally, disruptions were recorded in the online registration services to receive government-subsidized fuel coupons as more citizens applied for them.

On a similar background, a massive viral campaign with thousands of posts called to expel Afghan refugees and residents from the country, arguing that they steal the jobs of Iranians, live off the country’s budgets, allowances and shaky economy, and perpetrate crimes against Iranians, with some users likening them to parasites and leeches.

The rial has been in steady decline for decades, with prices sometimes referred to by multiples of 10, named Toman in everyday life, to make it easier for buyers to calculate expenses.

Official and military Iranian news outlets chose not to address the worsening economic situation, focusing instead on their promised “tough revenge” against Israel following the assassination of high-ranking Islamic Revolutionary Guards Corps officials in Damascus last week, attributed to Israel. This includes infographics of the different missiles with ranges reaching Israel, threats directed at Israel by officials, and a video showing a barrage of missiles directed against Israel.

However, many social media users were unimpressed by the government’s distraction attempts, with one user denouncing the corruption of leaders which according to them led to the situation while another one added “you took away our youth, a curse be upon you,” and a third user concluded: “Don’t tell us now that Israel is the one to blame for the Dollar’s [situation].”