Iranian currency collapses, protesters clash with police

Iranian currency collapses, protesters clash with police

Tehrān : Iran | Oct 03, 2012 at 3:12 PM PDT
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NHK - Rial's plunge hurting trade with Iran

Iranian currency Rial has plunged to the lowest and the public is out to protest against President Mahmoud Ahmadinejad. The riot police clashed with protesters in Tehran today over the collapse of the Rial that has lost a third of its value against US dollar in a week. The police fired tear gas shells on protesters and currency exchange dealers, who were protesting against the regime for the collapse of the currency. A number of observers opine that the Islamic Republic can face tough economic conditions in the next couple of months if urgent steps are not taken to fix the problem.

The United States and European countries slapped economic sanctions against the country for pursuing nuclear weapons as they were left with no other option to bring Iran to the negotiating table. Secretary of State Hillary Rodham Clinton even said during her visit to India a few months back that the US slapped sanctions against Iran with a heavy heart because people would suffer from it.

The sanctions did make Iran negotiate with the world powers to settle the dispute on its controversial nuclear program. However, unfortunately, there has been no progress in settling the dispute despite three rounds of dialogue on it. The six world powers - the US, Russia, the United Kingdom, France, China and Germany - have been struggling to resolve the issue through dialogue and negotiations. The three rounds of dialogue took place in Turkey, Baghdad and Moscow, but due to Iran’s intransigence, no progress was made. Iran remained stuck to the stance that the world powers first lift sanctions on the export of the country’s petroleum products and then it will show some flexibility on the controversial nuclear program.

Will the economic sanctions work against the intransigent Iran? It seems so, at least. People will take to the streets against the regime when they see the economy crumbling. Iran will be left with no other option but to have composite dialogue with the world powers. Israel and the US suspect that Iran has been trying to develop atomic bomb and it is need of the hour to stop the country from doing so. If Iran goes nuclear, the whole Middle East will be at risk. However, Iranian officials claim they are not trying to develop atomic bomb rather pursuing peaceful nuclear technology. They say that Iran wants to fulfill energy needs of the country through the technology besides treating some lethal diseases like cancer and diabetes.

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Iran's rial has lost around half its value this year
Iran's rial has lost around half its value this year
StephenManual is based in New York City, New York, United States of America, and is a Reporter on Allvoices.
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