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Iran's Currency Drops Again Vs. U.S. Dollar


Source: RFE/RL; photos by Yunes Khani, Mehr News Agency

The value of the Iranian rial has plunged by at least 9 percent to a new record low against the U.S. dollar. Currency traders in Tehran say the rial was trading at about 37,500 to the dollar on October 2, down from 34,200 at the close of business on October 1.

People looking at currency prices outside an exchange shop in Tehran.

The currency has lost a third of its value since the beginning of last week and more than 80 percent since the start of 2012.

The U.S. State Department says the plummeting rial shows the success of international sanctions.

Iran has faced increasingly tough sanctions over its failure to cooperate with the UN's nuclear watchdog, the International Atomic Energy Agency, to confirm that its nuclear program is entirely for peaceful purposes.

A woman buys foreign currency at an exchange shop in Tehran.

Economists say poor management by Iranian President Mahmud Ahmadinejad's regime is also contributing to the rial's rapid decline.

Iran's industry minister on October 1 blamed currency traders, calling them speculators who should be rooted out by Iran's security services.

Based on reporting by Reuters and AFP

Copyright (c) 2012 RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036.

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