Tehran shopkeepers shut stores over currency volatility

TEHRAN: Some shopkeepers in Tehran closed their stores on Monday in protest against economic hardships and sharp swings in Iran’s embattled currency, Iranian media reported, following similar demonstrations a day earlier.

State news agency IRNA said some shopkeepers and traders at Tehran’s bazaar “have closed or partially closed their stores”, adding that “some people chanted slogans in protest against the currency rate and the economic situation”.

The ILNA agency also reported a shopkeepers’ protest “against economic and livelihood pressures” at the bazaar, publishing images of traders gathering in the streets.

Iran’s currency has hit new lows on the unofficial market, with the US dollar trading at around 1.42 million rials on Sunday — compared to 820,000 rials a year ago — and the euro nearing 1.7 million rials, according to price monitoring websites.

The rates eased somewhat on Monday, with the US dollar at around 1.39 million rials, and the euro at about 1.64 million rials.

AFP correspondents said some traders, particularly import-reliant electronics vendors, had temporarily halted sales or shifted their pricing online, enabling them to more easily make adjustments as the exchange rate fluctuates.

On Sunday, the ISNA news agency said a group of shopkeepers and mobile phone vendors at a main shopping centre in Tehran “protested against sharp fluctuations in the exchange rate and the damage caused to the mobile phone market” by briefly shutting their shops.

On Monday, traders told ILNA that exchange rate volatility had made it difficult to set prices or finalise deals, with one protester quoted as saying they were selling items to cover their costs “but price swings prevent us from replacing our goods”.

The conservative-aligned Fars news agency warned the limited protest gatherings risked leading to instability.

Iran’s economy has been under pressure from high inflation and Western sanctions linked to its nuclear programme.

Western powers, along with Israel, accuse Iran of seeking nuclear weapons, a charge Tehran denies. On Sunday, Iranian President Masoud Pezeshkian delivered the budget for the next Persian year to the parliament, vowing to fight inflation and the high cost of living.

On Monday, Iranian Chief Justice Gholamhossein Mohseni Ejei said “anyone who engages in hoarding (foreign currency) is a criminal and must be dealt with firmly.”