Iranians are beginning to panic amid rising costs

...The sanctions imposed by the US and European Union have finally been having the desired effect on Iran since the beginning of the year.

“The suspension of any co-operation by international banks with Iran is the worst one of all,” says one economics expert in Tehran. “Nobody can pay or get paid.”

Iran lost between 25 and 40% of its primary income as a result of the oil embargo while sanctions have also crippled the country’s hopes of attracting foreign investment. Small businesses that have for decades enjoyed a healthy export trade can no longer continue doing business with foreign companies as a result of the banking embargo.

Iran is looking at opening up alternative trading channels in Latin America and Africa but economic experts do not take this plan seriously.

The value of the rial is seen as a symbol of the crisis. The national currency has lost two-thirds of its value against foreign currencies since the beginning of the year and even sectors that have nothing to do with foreign markets are feeling the effects....

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