Sunday, September 30, 2012

Sinking Rial, Rising Prices

As Rial Loses Value, Prices of Food, Raw Material and Consumer Goods Skyrocket

We reported late Saturday that after-hour trading had driven the exchange value of the rial to a historic low of 29,000 to the dollar. On Sunday, the rial did indeed continue its downward spiral and is now selling at 29,350 rials a dollar. The price of the official gold coin, Bahar-e Azadi, is also continuing its steep rise, also hitting a historic high of 1,156,000 rials during trading on Sunday.  

The steep decline of Iran’s national currency, the rial, has forced the prices of food, raw material and consumer goods, largely imported into Iran, to skyrocket to such heights never seen in the country. Sugar, rice, meat, corn, wheat, barley, soya, raw materials such as iron, and consumer goods such as refrigerator, washer and vacuum cleaner are among the products whose prices are on the rise on daily basis.

The situation is so dire that some shops are refusing to sell their current inventory expecting their prices to rise significantly in few days.

UPDATE: Rial is hitting a record low of 30,500 to the dollar in Sunday afternoon trading in Tehran


Anonymous said...

Well, that is the devastating judgment of the free market about Khamanei; he can not silence that judgment; and the solution is clear: he has to step down; don't know whether IRGC can push him to drink his cup of poison; it should become more or less even clear to IRGC that he is useless; they have something to lose in this game.

Anonymous said...

Khomeini once quoted that under the Shah,Iran was importing frozen meat from New Zealand and therefor not Halal.

After the "revolution for the mullahs,Iran not only imported non halal frozen meat from New Zealand but in larger quantity than before, therefor destroying the local industry in Iran.

Now everybody can see for themselves that Iran even imports Tasbees from China!

Anonymous said...

Wow! What geniuses these ex-market stall holders and mullahs are.
You would think they had some sense in business management,but alas none.
They should stick to selling vegetables and the mullahs stick to attending funerals and rozeh.
Irano beh gand zadan.

Anonymous said...

I have heard that Israel and the US are counterfitting the rial and importing it into Iran by train loads. This is what is really causing inflation.
Go Iran Go!!!

Anonymous said...

Anon 11:43 AM

And how is Israel and the US importing counterfeit rials by the train loads into Iran?

Anonymous said...

---- "
And how is Israel and the US importing counterfeit rials by the train loads into Iran?"---

It must be that iran is covered by secret Zionist train tracks.

No matter how crazy and obviously stupid the claim, there are some who can't resist trying to make themselves believe it.