An Iranian Economist Covering Economic Affairs in Iran and in the Middle East.
Sunday, January 22, 2012
Is Economy Sinking
US dollar was traded at 20'000 rials, British pound at 30'000 and euro at 25000! Is the economy sinking? I do not think so. However it sure has hit a crisis. Unfortunately these changes are happening at the beginning of new year shopping season in Iran (Iranian new year begins on the first day of spring). Traditionally this means an increase in demand and prices all over the marketplace. To this if one adds the declining rial, it seems inflation is ready to take off.