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Sanctions Begin to Compound Iran's Severe Economic Problems

(Washington Post) Thomas Erdbrink - Iranian President Ahmadinejad's government is confronting severe economic problems including some triggered by international sanctions, which are causing prices to rise and making it increasingly difficult for Iranian companies to work internationally. Steel prices have already increased by nearly 50% in the past two months because of the sanctions. Following fresh financial sanctions from the United Arab Emirates, Iran's Central Bank did not intervene when on Sept. 25, Iran's currency, the rial - stable for over a decade - plummeted by 15%, leaving traders and importers with evaporating bank accounts. "This all comes at a time when Iran is especially vulnerable because of its government's economic mismanagement and narrowed political flexibility," said Stuart Levey, a senior U.S. Treasury official.
2010-10-07 11:35:26
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