The Iranian currency rial continued its slide against dollar today, hitting a record low of 12,220 rials per dollar. Last Wednesday, the Central Bank of Iran (CBI) officially devaluated the currency by 11% to 11,710 rials per dollar. But the move did not stop rial’s fall in free markets, and just during the last three days the currency has lost another 4% in value.
On Saturday, the Federation of Industries, a trade group representing the Iranian industry, issued strong warnings against currency devaluation. In an open letter to President Ahmadinejad, the group said the 11% fall in rial’s value is causing the prices for raw material which are heavily imported to rise at least at the same rate, causing a corresponding rise in the prices of finished consumer goods.