Iranian traders and shopkeepers protest as rial hits record low

Iranian traders and shopkeepers staged protests for a second day on Monday after the country’s currency plummeted to a record low against the US dollar.

Iran's rial plunged to 1.42 million to the dollar on Sunday and recovered slightly to 1.38 million on Monday.

Videos on social media showed hundreds of people taking part in rallies in Saadi Street in central Tehran and in the Shoush neighbourhood near the main Grand Bazaar.

The semi-official Ilna news agency said many businesses and merchants stopped trading even though some kept their shops open.

There were no reports of a police crackdown, though security was tight at the protests, witnesses said.

On Sunday, protest gatherings were limited to two major mobile markets in central Tehran, where the demonstrators chanted anti-government slogans.

The rapid depreciation is compounding inflationary pressure, pushing up prices of food and other daily necessities, and further straining household budgets, a trend that could worsen after a change in petrol pricing introduced this month.

According to the state statistics centre, Iran's inflation rose to 42.2 per cent this month from the same period last year, and is 1.8 per cent higher than in November. Food prices rose 72 per cent, and health and medical items were up 50 per cent from December last year. Many critics see the rate as a sign of approaching hyperinflation.

Reports in official Iranian media that the government is planning to increase taxes in the Iranian new year, which begins on March 21, have heightened concern.

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