http://ipsnews.net/news.asp?idnews=106437
(...)
"The issue of Iran's foreign exchange rates has become so sensitive in recent days that Farsi language websites posting updated exchange rates have all been filtered, making them inaccessible to web surfers who do not have anti-filtering software or access to a VPN. Text messages containing the word "dollar" written in Farsi were also reportedly blocked for several days.
"Many official exchange shops have not been opening for business in the current climate as they were told by government authorities to post rates of approximately 14,000 rials per U.S dollar. Indeed, these rates can be seen on boards throughout the city, but as one exchange shop worker told IPS, "Good luck buying them at those rates. You won't find a single shop in the country selling them for the posted rates."
"This has placed even greater scrutiny on Iran's epicentre of unregulated currency trade in downtown Tehran. On Jan. 8, parliament voted to criminalise the unlicensed trade of foreign currency. So far, though, transactions on street corners throughout southern Tehran are continuing as usual.
"Having lost over 30 percent of its value against the dollar since September, the purchasing power of the rial, and consequently that of average Iranians, has dwindled.
"Changes in the rates used to be gradual and based on easier to define indicators such as the price of oil, ups and downs on Wall Street, or even in Tehran's own stock exchange. But the new atmosphere defies those usual parametres and seems to be more influenced by rumour, paranoia and manipulation of how much foreign currency is made available from one day to the next, fueling big swings in the price at any given moment.
"In Tehran, the results of sanctions along with the slide of the rial have sent shockwaves through a society that has long considered mercantilism essential to its identity. Here transaction is an essential component of life and stripping Iranians of their ability to do so has created growing resentment. (((Resentment of the foreigners applying the sanctions, that is. It's not like they're running around demanding that the regime should knock it off with the atom bombs.)))
"The uncertainty in the currency may have resulted in a lack of confidence in it, but has yet to reduce consumption. People are still buying goods as there is a sense that the rial could go much lower. Furthermore, there no real shortages to be reported yet, as the smuggling ships that have fueled Iran's gray market economy for decades are still sailing the waters of the Persian Gulf, unloading on Iranian soil.
"Prices on most goods, however, are creeping up quickly. As most products available at grocery stores are imported, prices have steadily risen in recent weeks. One example is bottled water, up 25 percent since September. Another is eggs, which now cost approximately 4,000 rials each throughout Tehran.
"For higher priced imports, especially electronics, prices are regularly being quoted by the day rate of the euro or the dollar. On popular products, especially brands like Apple, which only arrive in Iran via smuggling, prices are attached to foreign currency since they have to purchase those products in dollars or euros. An Iphone 4S that cost around 11,500,000 rial in December now costs 15,500,000 - still somewhere between 850-900 dollars when the fluctuation in currency is considered.
"In the real estate market, more short-term speculation for an economy that already rewarded a get rich quick mentality has resulted in abnormal windfalls for those in the business of buying and selling property...."
