Iran's Currency in Free Fall; Ahmadinejad Blames US

He cites 'psychological pressures,' but his critics aren't buying it
By John Johnson,  Newser Staff
Posted Oct 2, 2012 11:59 AM CDT
An Iranian street money changer holds Iranian banknotes with a portrait of late revolutionary founder Ayatollah Khomeini, in the main old Bazaar of Tehran, Iran.   (AP Photo/Vahid Salemi, File)

(Newser) – People holding Iranian rials, including Iranians themselves, can't seem to get rid of them fast enough. The value of the currency has continued its drop, plummeting 40% against the dollar in the last week alone, reports the New York Times. Mahmoud Ahmadinejad blames "psychological pressures" brought on by Western sanctions, but his political rivals say his government's mismanagement is mostly to blame, and they may rub it in by forcing him to submit to questioning by lawmakers, reports the AP.

"Are these (currency) fluctuations because of economic problems? The answer is no," said Ahmadinejad. "Is this because of government policies? Never. ... It's due to psychological pressures. It's a psychological battle." Meanwhile, Business Insider take a look at "why everyone and their mothers are buying" a different currency: the Mexican peso, thanks to steady industrial growth.

My Take on This Story
Show results without voting  |