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Currency traders under investigation in Iran

10/13/10 Source: Radio Zamaneh; photos by Mehr News Agency

Iran's Central Bank announced that three currency exchange offices have been shut down due to a number of violations.

People waiting for foreign currency by an exchange office in Tehran

Central Bank auditors announced that three currency exchange offices have been shut down due to a series of violations and their files are under investigation.

The Central Bank also announced that the public can acquire foreign currencies through banks and private foreign exchange offices.

Head of Melli Bank of Iran confirmed however that the sudden rise in demand for the US dollar has not subsided yet. He announced that the dollar is being sold at the rate of 1053 rials to the public today.

Last month the rial suddenly fell against foreign currencies causing a surge in the exchange rate for dollar at 1200 rials.

The Central Bank began selling the dollar at 1070 to control the foreign exchange market and currency traders, who had suddenly stopped or reduced their business, were threatened with legal proceedings if they refused to do business as usual.

Some Iranian authorities have referred to the developments in the currency trade as "economic sedition."

Commander Esmail Ahamdi Moghaddam, head of Iran's security forces said the recent surge in the foreign exchange rate was organized by "enemies" who tried to create a crisis by collecting foreign currencies in the market. He insisted that Iran is in no way restricted in distribution of foreign currencies.

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