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Raheb Homavandi / Reuters file
A money changer holds Iranian rial banknotes as he waits for customers in Tehran's business district in this January 7, 2012 file photo.
The United States, the European Union and the U.N. have imposed tough economic sanctions against Iran, blocking access to the international banking system and curbing sales of Iranian crude oil as a way to persuade Tehran to abandon its nuclear program.
As a result, Iran’s currency, the rial, is in a constant state of flux, but mostly on a downward trajectory. These days, it seems to fall in value against the dollar on an hourly basis. On Tuesday the currency hit an all-time low against the U.S. dollar, trading at 26,500 to the U.S. dollar on the open market, according to Persian-language currency tracking website Mazanex.
“Our money is becoming more and more worthless every day,” said Sarvenas Sadi, an elderly woman doing her daily shopping in Tehran earlier this week.
She picked up a handful of limes and exclaimed, “These were 100 percent cheaper last year!”
Asked whether she ever thought she would see the currency devalue so much, she replied, “Never! I remember before the [1979] revolution $1 was worth 70 rial, now it’s worth 26,000! Who would have ever have thought!”
Iranians feel the pain of sanctions: 'Everything has doubled in price'
Did she think things would ever balance out and the price of goods would come down to what they were before. “Unfortunately I don’t think so. The thing with Iran is that once the price of something goes up, it never comes down again.”
So what’s the solution? “Eat less limes,” she jokingly replied.
AP
Two potential Iranian customers look at fabric bolts in Tehran's old main bazaar in this picture taken July 14, 2012.
Manufacturing hit hard
The financial situation is affecting people from all classes. Thousands of workers have been laid off and have not been paid back wages because companies have simply run out of money. Majid, a 32-year-old mechanic who used to work for a large car company was recently laid off and is owed six months’ salary.
“They are laying off people left, right and center. I doubt there will be a company left by the New Year,” he said, giving just his first name because of the sensitivity of the issue in Iran. Persian New Year will be on March 21, 2013.
The car industry, one of the biggest manufacturing sectors in Iran and a massive employer, has been affected dramatically; Iranian media have reported a 30 to 50 percent drop in car and component production in the past six months. Iran was the 13th-largest auto maker in the world in 2011, producing 1.6 million vehicles.
The Iran Khodro Company, the country’s leading vehicle manufacturer, had become the largest vehicle manufacturer in the Middle East, Central Asia and North Africa. The company won the annual national prize for export activities in 2006 and 2007 with Russia, Syria, Turkey, Iraq, Azerbaijan, Ukraine, Egypt, Algeria and Bulgaria among their key consumers.
But higher prices, due to the soaring costs of components as a result of the sanctions, have caused a drop in demand.
Israel's Netanyahu: Draw 'clear red line' to stop Iran from getting nuclear weapons
For instance, France's Peugeot Citroen halted shipments of vehicle kits for assembly in Iran earlier this year, saying international sanctions barring transactions with the country's banking system made it difficult to obtain sales financing.
Sanctions have taken a toll on the Iranian economy. The government is reluctant to admit it. Inflation is high. The number of young unemployed is a growing concern. NBC's Ali Arouzi reports.
Majid, the mechanic, said he is looking for work elsewhere but it is proving very difficult. “There are not many jobs going and it is getting me more and more depressed.”
Oil sales to travel - down
The oil sector has been hit hard too. The Iranian Labor News Agency reported that a letter on behalf of 20,000 oil workers from across the country was sent to Labor Minister Abdolreza Sheikholeslami complaining that they had not been paid in months. The letter demanded an increase to the worker’s salaries of $120 to $285 a month, adding that at the current rate they were "way below the poverty line.”
Mohammad Reza Bahonar, a prominent Iranian member of parliament, said oil exports in June-July had dropped to "around 800,000 barrels per day," according to a report by ISNA news agency. That’s a low not seen in more than two decades, and less than half the 2.3 million barrels per day exported just a year ago.
But Minister of Petroleum Rostam Qasemi was quoted by ISNA saying that overall oil production this year "will be the same as last year."
Israel's Prime Minister Benjamin Netanyahu called for a firm deadline for Iran to halt its nuclear program, using a simple drawing to warn the UN that Iran will soon reach the point of no return in its development of nuclear weapons. NBC's Andrea Mitchell reports.
The strangling of the economy isn’t just affecting blue-collar workers.
Middle-class Iranians had become accustomed to foreign travel – to Dubai, a playground for Iranians only an hour and half away, Turkey, one of only a few countries that does not require visa’s for Iranians, and Thailand. But the cost of travel to any of these destinations is prohibitive to many.
More Iran coverage from NBC News
Maryam, a travel agent in Tehran who also only gave her first name, estimated that the number of travelers has been halved in a year. “The price of tickets and organized tours increased almost a hundred fold. They say that this will boost domestic holidays, but I think that is even too expensive for most people.”
This was evident to me last month flying back to Tehran from London via Dubai. Usually the flight from Dubai to Tehran is jammed, but not this time. Business and first class were full with the super-rich of Iran, but 70 percent of the plane which makes up the economy class was almost empty.
As the American mission in Afghanistan winds down, dangers still abound for U.S. troops – the most recent incident involved a Taliban gunman who fired on a U.S. Marine outpost in Afghanistan's Helmand Province. NBC's Richard Engel reports.
Expected to get worse
Mehdi is a young entrepreneur who imports computers and accessories who also spoke on the condition of anonymity. He said people are just not buying in Iran right now. His biggest wish was that the value of the rial would just stay fixed against dollar – even if it was at an unfavorable rate – just so consumers would know how much things would cost in a weeks’ time, a day or even in the next few hours.
While the sanctions have certainly taken a major bite out of the economy and are hurting people from all walks of life – it does not seem to be making the government authorities buckle. If anything it seems to have stiffened the government’s resolve and things are set to become even more difficult in the not too distant future.
Britain, France and Germany are urging their European Union partners "to further step up the pressure" on Iran. Further sanctions targeting the Islamic Republic's energy, finance, trade and transportation sectors are expected to be formally adopted on Oct. 15.
At schools, in shops, and on the streets of big cities and small towns, daily life plays out in Iran.
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Leave a Comment:
Um... Why do we have sanctions at all? WE have thousands of nukes and have USED them, if WE can have and use nukes then why can't Iran? Talk about hypocritical double standard.
Evan, don't be a damn fool! thats just a ridiculous comment.
You are talking about a country that has openly advocated for the "total and complete destruction of Israel" they do not ask to have WMDs to protect themselves from agression, they admitedly want to destroy another nation. There is no double standard there.
Well, we do have the dubious distinction of being the the inventor of, and the only nation to use, nuclear weapons. I have read papers from President Truman that had he fully comprehended the horror he would have not authorized them. Basically the nuclear genie is out, but we still want to contain it because it can literally destroy the world. So, it is in our best interest to limit who can have them. If the other nuclear powers out there didn't agree, they would have already handed Iran the bomb.
Japan started WWII for the USA, and they bragged that every man, woman and child would defend the homeland to their deaths. So every square inch of Japan was a military target. Probably saved 100,000's of American lives by using the nukes. And you dare to compare 1945 Japan to today's Iran?
Go back to school, Evan. Try to finish this time.
Who did this? This was a discussion about nuclear weapons, not a comparison between Japan and Iran.
/confused/
Evan,
Koch, is typically a Hebrew name. Why would someone, who "most likely" has some Jewish heritage, want to arm the country that wants to destroy their homeland? I don't get it..
God said (not me) that the Jewish people, are the chosen people. I'm a Christian, I won't question Gods word. We must protect Israel.. for the sake of my Christian faith, the Jews, and even Islam. Israel must survive. And all who threaten it, must be stopped!
Shawn, name one country Iran has attacked first since the '79 Revolution. The answer is ZERO.
Now answer this question, what country has used a nuclear bomb and instead of targeting military installations decided to target HUNDREDS OF THOUSANDS OF INNONCENT CHILDREN, WOMEN, and men. The answer is the federal government of The United States of America.
Actually MUGTECH, the investigators that went into Japan after the bombs were dropped discovered that even if Japan wasn't going to surrender they would be forced to because of their military defeats and collapsing economy. They estimated that Japan would have been forced to surrender in another few months.
Skunk, don't be foolish, You are correct, that Iran has not attacked anyone since the revolution.
But, thier President, Ahmedinijahd, has continued to state that his "one and only objective in life, is the total and complete destruction of Israel"
You think he is just fooling around, talkin smack? I'd prefer not to call his bluff..
That's not true at all. He wants the government dismantled. The "regime".
And on that point I agree with him 100%.
Though given the sanctions, there's no question that common Iranians are hating Israel more and more everyday. Who could blame them?
Shawn, that's actually a wives tale.
From what I've seen Ahmadinejad has only said that in public once, and he was quoting the Ayatollah from the early eighties, those weren't his direct words.
Other Iranian leaders have said that in some form or another, but again I will reference the fact that they have never attacked another country first, so I would take anything they say with a grain of salt.
Are they religious fundamentalists that are at best a little off ? Absolutely, but I can say that for most of the leadership of this country as well. And our leaders HAVE used nuclear weapons on innocent civilians, and our government HAS attacked other nations first and not always with good cause, reason, or public support.
Nobamastank banned, rereg of multiple accounter Nobozospeak.
Shawn D, you are backing a people who didn't know Christ. Just as you don't understand Israel. Revelations says the anti-christ will be of Hebrew origin. Rev. 2-9 says beware of the man calling himself a jew who is not a jew, satan has his synagogue. These people in Israel are not Hebrew, they are impostors from eastern Europe. Read more to understand. Didn't Jesus tell them; Didn't you read what the profits were telling you? Just like you they didn't know.
Note to dissatisfied Iranians. To cure your economic woes overthrow your crazy theology based government and enter the modern world. With your oil reserves you would soon become an economic superpower. Or you can stay with the status quo and suffer; the choice is yours. There is no room in the global economy for Mahmoud Ahmadinejad.
The sanctions appear to be working. Even their leader can't afford to buy a disposable razor, a tie or a civilized non-paranoid pleasant personality. Don't they have Walmarts in Iran?
Everyone outside the fundamentailst fantasy land of religious extremist dictatorship
Good policy, make the little guys on the street take the blame for their nuke program. This no doubt will make us even more popular in the eyes of the people in Iran. If they did not hate us before they sure do now... thank you BO and Hillary.
Send the nut job to some distant desert post, overthrow the ayatollahs and start a new future.
Lacking that, not even threats of nukes, or real nukes will get them anywhere.
RNK has tried this imminent threat-based diplomacy for decades (lacking the religious component, thank you). It just doesn't work.
Music to the ears of the IMF - who will be more than happy to help Iran completely destroy its country- Who needs nuclear weapons when you have the IMF?
Yes the Iranian people are suffering because of it...but eventually they will realize what the leaders are doing to their country and try and take back their country.
Unfortunately the people of Iran lack the courage to revolt against their sadistic government, knowing its unprecedented cruelty towards Iranian people. But, I agree with you, and think those who brought this evil into our world (and their children) should pay the ultimate price, and get rid of it.
Americans lack that courage as well, I should say the ones that aren't conditioned and brainwashed by the propaganda.
Iran going to have a rough couple of years. Except for the elite, the country will be bankrupt, ready to revolt agianst the regime again. And then, right before they have a completed bomb, Obama will drop the hammer. By then, Syria won't even be around to be an ally in the war against the infidels.
The tough question is, whose going to help restore and rebuild a country of 70 million?
China.
Are kidding? Obama, drop the hammer. Think again, Irael will drop the hammer and quickly, our impudent administration hasn't got the balls to do that. Please don't site Bin Laden either, we didn't bomb Pakistan.
I like that ladies sense of humor.
They can trade in Uranium and kill two birds with one stone.
What's the exchange rate on daughters and camels?
Sanctions bites are a pittance compared to what's coming on November 9th. After then they will need radiation suits to even survive. Perhaps in time the craters will become a tourist attraction and they can rebuild with income from that.
What can you expect from the leaders of this country who pray to a Pervert and believe his name is magical ?
See Israel? Pump the brakes on the war talk... the sanctions are working.
Pump the brakes you say, I say step on the gas. Folks like you don't understand, Iran's leadership has publically threatened to destroy Israel and if you had the intel they have and being closer in location, I'd be damn to risk my countries safety because of some mickey mouse administration thinks I should. Here's a clue, put yourself in their shoes pal.
War talk is the only talk the Israeli government understands. For them, war an threats of war is "another-day-at-the-office" diplomacy. "Compromise" is a word that does not exist in the Israeli language.
Not true at all. The statement you referred to is that the government should be eliminated. Not the people, and not by Iran. And it's a statement I agree with 100%.
And given the hardships they are suffering because of Israel, they can't blame one bit.
When the US is threatened in the way Israel is, I beleive your story would be different, not to mention the Jews are trying to hold on to the promises made to them thousands of years ago and if anyone has suffered hardships, its been them. If Mexico told you to give up Texas inorder to live free with out terror, you'd say I don't think so...compromise that?
Israel is not threatened. Israel threatens.
As for promises, that's hogwash. How can you expect faith issues to be respected by people of another faith? And how can any bible-believing Christian respect a country that absolutely pukes on any concept of equality of all people, who live and breath war at every turn?
Newsflash: The Jewish faith teaches that NOT all people are created equal, that non-Jews live and exist for the benefit of Jews. And that's in the Old Testament, so don't be calling me names about that. Argue with God if you want. Christianity teaches otherwise which is great, but somehow antiquated teachings, even though revised in the New Testament about how God's love and grace are for ALL PEOPLE is somehow swept under the rug just because some people who claim to be OT Jews want war. That IS a serious problem in world politics.
Soon Iran will be like North Korea, a country with a nuclear bomb that they can never use, but who cannot afford to feed its own people. Not a good business decision, if you asked me, but that is what Iranians want. No need to go to war over this, if they want to have a nuclear bomb at the expense of everything else, let them do it. A nuclear bomb will only serve to guarantee their own destruction.
Actually there are very few in Iran who want this, only the top religious leaders who also control the facade of government and more importantly the military. Don't be too surprised if the people of Iran rise up and overthrow those in charge someday soon.
It's not like Afghanistan where we kicked out the Taliban and the Afghans welcomed them right back in with open arms.
But after NK proved nuclear capability, they dropped out of the news. All the concerns about them having nukes went away.
Iran should make a nuke or buy one from Pakistan and maybe then put the matter to rest. Seems the only way to get international respect in this world.
If having an Islamic Republic is Allah's will, then so is the misery that follows from its policies.
Complaining sounds like blasphemy to me!
A country of 70 million people suffer because a country of 7 million exerts huge control over the US Congress and a number of other countries.
Iran, if they had nukes, is hardly any threat to Israel. Israel has plenty of nukes to strike back and Iran knows it, so Iran has a lot more to lose than Israel in any nuclear contest.
Iraq, for all it's ills prior to 1992, was still better off than it was after the war. The sanction's devastated Iraq, and all because of a lie that they had WMD's. The sactions are a precursor to war. Iran should be left alone.
Sounds like most americans asleep at the wheel. Understand that Iran's formal policy is the destruction of Israel and their not like most muslim lead countries and its not a weapon for weapon retailation issue, its size and location. please do a little reading up on Iran and its relationships with other before sipping the kool-aid and falling asleep thinking the world is just fine and eeryone should just hold hands and sing a round of we are the world!
Not true, though given what the sanctions are doing, they could hardly be blamed for any ill-will toward Israel. If Israel didn't exist -- If Germany, Britain, the USA and other countries weren't so generous with Mid-east / Arab lands in 1948 -- then Iran wouldn't be suffering as it is today. If Germany was so sorry about what happened under the Nazi's why didn't they give their own land for the creation of Israel? By what right did they take Mid-east land? How would Americans feel if Delaware was taken instead?
No, Iran's leadership expressed an opinion that the Israeli government should be vanquished, which I agree with.
And Iran has not invaded any countries or started wars in hundreds of years. There is no comparison between US foreign policy and Iranian foreign policy. Factual history shows Iran to be by far much less militant that either the USA or Israel.
My issue is, Why isn't the world holding Israel responsible for the SAME violations, and worse, since they have non-regulated/monitored Nuclear weapons program?! This is way beyond being hypocritical in foreign policy. If ALL of you writing about the uprising of the Iranian people, what are you going to do, or say when Israel pops a Nuke to stay alive.. when the rest of the middle-east gets fed up with our self-sufficing foreign-policy. Say what you wish, but it is Israel that CURRENTLY has Nukes and holds the Middle-East hostage to it's desires and foreign policy. Period. There we are, that's where we are at as a society. Do we allow our government to drag us down with Israel? I could care less about them one way or the other. I wish NO harm to them, and they should have a country there own! Instead of taking territory away from other nations, as was done, why not give them the same area size country in the US, UK, or France? We are the ones that wanted to give them the territory, even by force against the Arab countries, if necessary. So.. Which state do you want to give up for world peace?! Yeah.. that's what I thought! Bunch of Hippocrates! That is why I absolutely detest the fact that I served over there for this country. I gave you the constitutional right to say what you wish, but you know what.. the ones that fought for your right, have something to say, as well.
That fact that you can compare the leadership of Israel to the leadership of Iran is baffling. You are comparing the capacity of a rational government to that of one run by a fanatical extremist bent on destruction. These sanctions have not been imposed for Israel, they have been imposed for the good of the civilized and rational countries around the globe.
Ranger, that is ridiculous! Israel has not threatened anybody. They have weapons to defend themselves from aggression. They are surrounded by countries that have openly advocated for thier destruction. If you remember the first gulf war. Israel was the recipient of SCUD missle attacks from Saddams Iraq. They put on thier gas masks, hid to protect thier chidren and NEVER retaliated.
If ever in history, a country had the absolute right to retaliate. To defend themselves, it was Israel. they could have blown Tehran off the face of the Earth. They did not! This is a country that WANTS to have peace with its neighbors. Its the neighbors that refuse.
Israel is within thier rights, to ask the world to help keep Iran free of Nukes. The time is getting short. Iran can not be nuclear armed. they have already said they will destroy Israel. They are a threat to civilation around the globe.
@Dab, how can you claim Mr. Nut N. Yahoo is "rational"? Compromise doesn't even exist in his vocabulary. He's got some 300 nukes he won't even admit to, and he has the audacity to complain that Iran won't allow inspections?
Let's be absolutely honest and clear: Nothing short of serious war will satisfy Mr. Yahoo. Period. He wants Iran's people, all 70 million of them, vanquished and if he could wish it and make it happen, it would be done without any regret for the innocent loss of life whatsoever.
Expat
You are obviously unaware of the constant threat that Israel faces from Iran and others. It is the Iranian leadership that wants to obliterate Israel (or the "zionist state" as they call it), you have got to be kidding. Try imagining the constant threat of suicide attacks and threats of war from fanatics. You are obviously coming from a bigoted point of view which is clear from some of your previous posts. You may think of yourself as a righteous Christian but your statements show otherwise, crawl back under your rock and go away.
sounds like the u.s. everything has gone up but income and our money is worth less and less...that and our country is also run by a bunch of corrupt thieves
At first I thought the article was about the USA and what is happening here. Another 4 years of Odumbo and what a dollar buys today will cost 1.50 to 2.00... this is what happens when a governmnet borrows, prints and spends money it does not have.... and promise "free" benefits to get elected.... The funny thing is that the dumb Americans who vote for Odumbo will ultimately be the ones hurt the most, as the end result will be the total elimination and repeal of all "free" benefits.... look to Greece for the model and plan for what will happen in the USA.
Number one characteristic of a narcissist is lack of compassion for others. This should give you a clue as to his mental health status.
I do NOT feel sorry for them at all!! Stand up to your "supreme leader POS", and make a change!!
As though Israel even cares. Mother Theresa could be Iran's president and Israel would still be calling for war. And the USA would still be kissing up to Mr. Nut N. Yahoo.
It sounds like the Method of sanctions Obama has enforced on Iran is working.
But just because it came from Obama then its going to be more, Obama this Obama, that a real President would bomb bomb bomb them. lol war war war killem all (average Bush administration minded american) lol
Not that I'm a big Bush supporter but it started with him (Bush's fault? LOL)
We can see the sanctions are working and thats a good thing.
The iranian people need to realise this is what happens when you allow religious radicals take power over you. The Ayatollahs and that wack job Akmasdeanajad(however you spell it) are so obsessed over Israel they are like a Moose during rutting season...they cant focus on anything else. They are willing to destroy their own country just because they cant get past their own hatred. What the he11 is wrong with these leaders? They are not doing whats in the best interest of their country. Their job is to lead their people and generate a healthy thriving economy for their people. This group of ding bats clearly cant see past their own insanity.
If I were one of the Iranian people I would strike and protest. The hard working people dont deserve to have to live like this..no matter who they are.