Page 38 - IRANRptJul22

Iranian rial sinks to all-time low, unrest sparked in Tehran’s Grand Bazaar district
Iran have become deadlocked. The lack of progress soured market sentiment, hurting the rial.
The Iranian rial (IRR) hit a record free market low of 332,700/$ on June 12 as market sentiment further soured on prospects for the talks aimed at keeping alive the nuclear deal.
The euro and the pound sterling also fell to all-time lows at IRR349,900 and IRR400,000, respectively. The pound broke the 400,000 barrier for the first time in 2022.
At the start of June, the rial was at 318,000/$. When the 2015 nuclear deal, or JCPOA, was signed with world powers, it was trading at 32,000/$.
Gold sovereigns including the Emami and Azadi coins also became more expensive over June 11-12, with both hitting around IRR160mn on the open market in downtown Tehran’s Ferdowsi Street, the home of money changers in the city.
As the rial has sunk, the cost of living crisis in Iran has continued to swell, sparking a series of further protests. The latest protests saw merchants across the Grand Bazaar area of downtown Tehran on June 12 demonstrate against the perceived poor handling of rising prices by the government.
Unverified video footage uploaded to social media showed shopkeepers in the Bazaar district chanting against the Islamic Republic system and giving credit to the US, saying: “The US is not our enemy, the enemy is here.”
Other footage showed shopkeepers with their shutters down shouting “Bi Sharaf” or “No Honour” in chants aimed at the government in the Aminhozour area of central Tehran, the epicentre of white goods sales in the capital. Other video focused on armed police descending on the area, with protesters shouting at officers to not physically assault those chanting against the regime.
Iran has looked at alternative ways to shift away from its heavily depreciated Iranian rial (IRR)—in part due to US sanctions disconnecting the currency from global payment systems. With Russia, another SCO member under international sanctions from its war in Ukraine both countries are now looking for alternative avenues to sell their oil and gas in the international market.
Safari said that Iran has made the proposal in a letter sent to the Shanghai Cooperation Organisation almost two months ago, the SCO has not yet commented on the suggestion.
He added that the country will make follow-ups and expressed the hope that the proposal would be approved by the organisation.
Safari said that the use of a single currency by the SCO member states help them resolve issues they face in trade, without mentioning sanctions directly. Iran joined the SCO in September 2021, when its bid was unanimously approved by the bloc’s seven permanent members.
The Iranian official noted that Iran is preparing to align its economy and increase its interactions with other parties of the organisation.
Iran Customs Administration announced last month that the volume of trade between Iran and the SCO has grown to over $37bln in the past Iranian year
Iran proposes SCO member states form single currency
38 IRAN Country Report July 2022 www.intellinews.com