(Washington Post) Thomas Erdbrink and Joby Warrick - At a time when U.S. officials are increasingly confident that economic and political pressure alone may succeed in curbing Iran's nuclear ambitions, the mood in Tehran has turned bleak as Iranians prepare for a period of prolonged hardship and, they fear, war. Economists and independent analysts say the sanctions have aggravated the country's chronic economic problems and fueled a currency crisis. The Iranian currency, the rial, shed more than a third of its value, triggering huge increases in the prices of imported goods. Iranian authorities ordered money changers to post much lower exchange rates for dollars in their shop windows Wednesday. Economists and businessmen say that after years of erratic economic policies by the government of President Ahmadinejad, each new round of sanctions increases fears of an overall economic meltdown. According to the Iranian Labor News Agency, high prices for commodities and raw materials, caused by the rial's plunge, have led to the closure of 50% of businesses in the biggest industrial zone near Tehran.
2012-01-06 00:00:00Full ArticleBACK Visit the Daily Alert Archive