Iran is spiraling into crisis mode as the value of the rial plummets. Here’s the details…
Editor’s Note: In mid-May, we reported that gold had been replacing the Rial as local currency of choice, but with Iran suffering a full blown fiat currency crisis, gold is becoming a store of value and a hedge against uncertainty.
from Radio Farda
Tehran’s cell phone market went on strike on Sunday June 24, with store owners and people marching in protest in Jomhouri (Republic) Avenue as the city’s Forex market, just a stone-throw away, recorded the highest value for US dollar against the Iranian currency rial.
Cell phone sellers decided it was impossible to sell any handset considering the exchange rate of over 90,000 rials per dollar. They said the rising exchange rate has brought about an uncertainty in the market which made cell phones extremely expensive for buyers.
User generated videos received by Radio Farda show buyers urging store owners to shut down and protest and the crowd pours into the street, with others joining them.
The U.S. dollar rose from 80,000 rials to 90,000 in just one day.
The forex market also experienced a record high for other foreign currencies. GB Pound was traded for over 120,000 rials and Euro for 106,000 just before the market decided to close, the report said.
The market for gold coins also came to a standstill as the price of standard coin reached 32 million rials, almost three times its price in March.
Iranian media on Sunday reported protest gatherings at the Alaeddin and Charsou malls, the major cell phone and other digital appliances outlets in downtown Tehran on Sunday after shopkeepers closed their shops.