This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-19798655
The article has changed 10 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Iran's rial falls to a new low, reports say | Iran's rial falls to a new low, reports say |
| (35 minutes later) | |
| Iran's beleaguered currency, the rial, has fallen to fresh record lows against the US dollar, according to media reports coming out of the country. | Iran's beleaguered currency, the rial, has fallen to fresh record lows against the US dollar, according to media reports coming out of the country. |
| The rial fell a further 9% on Tuesday, following Monday's 18% decline, news agencies have reported. | The rial fell a further 9% on Tuesday, following Monday's 18% decline, news agencies have reported. |
| The currency has reportedly lost more than 80% of its value since 2011 because of US-led trade sanctions. | The currency has reportedly lost more than 80% of its value since 2011 because of US-led trade sanctions. |
| Recent moves by Tehran to ensure key importers have enough dollars are said to have further weakened the rial. | Recent moves by Tehran to ensure key importers have enough dollars are said to have further weakened the rial. |
| 'Security move' | |
| The US-led sanctions are being imposed on Iran because of the country's disputed nuclear programme. The US accuses Iran of aiming to build nuclear weapons, while Iran counters that it simply wishes to develop nuclear power stations. | The US-led sanctions are being imposed on Iran because of the country's disputed nuclear programme. The US accuses Iran of aiming to build nuclear weapons, while Iran counters that it simply wishes to develop nuclear power stations. |
| While Iranians are said to be scrambling to convert their rials into hard currency, thereby adding to the downward pressure on the rial, the government has blamed speculation by money changers. | While Iranians are said to be scrambling to convert their rials into hard currency, thereby adding to the downward pressure on the rial, the government has blamed speculation by money changers. |
| According to the Iranian Fars news agency, Iran's Minister of Industry, Mines and Trade, Mehdi Ghazanfari, said: "We have greater expectations that the security services will control the branches and sources of disruption in the exchange market. | |
| "Brokers in the market are also pursuing the increase in price, because for them it will be profitable, and there is nobody to control them." | "Brokers in the market are also pursuing the increase in price, because for them it will be profitable, and there is nobody to control them." |
| On Tuesday, the rial was said to be trading in Iran at about 37,5000 to the dollar, down from around 34,200 late on Monday. | On Tuesday, the rial was said to be trading in Iran at about 37,5000 to the dollar, down from around 34,200 late on Monday. |
| The rial is not traded on the global currency markets, so it is not possible to produce accurate figures for its value. | The rial is not traded on the global currency markets, so it is not possible to produce accurate figures for its value. |
| 'Inefficiency' | |
| Amir Paivar, a business reporter at BBC Persian, said that as a result of the tightened trade sanctions, Iran's income from oil exports had fallen by 45% this year, causing the shortage in dollars and other hard currencies. | |
| He added that Iranian authorities had for many years used the country's abundant oil earnings to keep the rial artificially high. | |
| With oil revenues now sharply reduced, our reporter said that both the government and the central bank now seemed unsure how to react. | |
| He added: "Iran's years of state intervention in the artificial appreciation of the rial, thanks to abundant petro-dollars, has turned the currency into a barrel of gunpowder now detonated by sanctions. | |
| "At a time of crisis, President Mahmoud Ahmadinejad's government is plagued by inefficiency, mismanagement and a domestic power struggle." |