Iran Makes Arrest in Violation of Money Trade

50 people in Iran have been arrested for wrongful foreign exchange deals, which was the lead to a riot in Tehran just three weeks ago, because of the skyrocket in the Iranian currency.  This arrest was double what they had predected and digging into the investigation further has lead to the concern about the strength of the Iranian currency.  The Iranian currency, the rial, has dropped it's value against the dollar by 40%.  This issues have been claimed to be linked to the West's punitive anti-nuclear sanctions.    Also tied in is the exporting restrictions on the Oil, causing shortages in income and goods imported.

Then minister says they are on a strict lookout for these individual that are the cause of this currency scandal and believe that there are links with foreign enemies whom want to subvert Irans economy.  The Iranian oil minister made threats that they were going to halt all oil exports, but was announced as a bluster because they clearly couldn't afford to loose the income from their oil sales.

http://www.nytimes.com/2012/10/25/world/middleeast/iran-makes-arrests-in-violations-of-money-trading.html

It is said that the black market sales of the rial went from the limited time sale of $1 to every 12,500 rial to an astonishing rate of up to 39,000 to every U.S. $1.  All of this is linked to the nuclear program in Iran where people believe that it will be used for weapons and not just for power as they claim and it is suggested that the foreigners that are effected by this are the cause of this historical pung in the Iranian currency.  The rates were only offered fairly to those whom they receive imports from for specific goods such as grains, meats, and medicine, and the industrial imports would have to pay the black market rate.

The dropping rate of exporting oil from Iran means that there are less dollars spent, which in turn means more rials are being spent and it will lead to inflation.  The prices of dairy, and grains have skyrocketed and are claims that it will continue to rise.



http://money.cnn.com/2012/10/05/news/economy/iran-currency/index.html