Iranian police have clashed with protesters who are demonstrating over the recent collapse of the rial currency in the capital Tehran, it was reported. The Iranian currency lost 40 percent of its value against the U.S. dollar in the past week.
The protests were triggered after riot police moved to shut down a black-market for foreign currency in Tehran and arrested a number of traders for selling U.S. dollars, according to Reuters.
Witnesses told the news agency that police shot tear gas canisters at the demonstrators, who were angered over the devaluation of the rial and yelled “traitor” in reference to President Mahmoud Ahmadinejad. They said his policies were responsible for the problem.
Shopkeepers in parts of Tehran also went on strike. “The price of the dollar was unclear so we went on strike and decided to shut our store,” a business owner named Rouhollah told Business Week.
Iran’s currency has been in a freefall due to Western sanctions over its disputed nuclear program, making it difficult for the country to sell oil—it’s main export. By Monday, the rial fell to 35,000 against the dollar, according to Business Week.
“Everyone wants to buy dollars and it’s clear there’s a bit of a bank run,” said a Western diplomat reported Reuters.
“Ahmadinejad’s announcement of using police against exchangers and speculators didn’t help at all. Now people are even more worried,” said the Tehran-based Western diplomat, who was not named.
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