Iranian economy choking and intensify sanctions

Iranian economy choking and intensify sanctions

Published 27/09/2012 11:43 AM

London: Al-Sharq Al-Awsat
issued the Iranian economy, which depends heavily on oil, weak indicators under the pressure of Western sanctions, while the president will deliver Mahmoud Ahmadinejad addressed the General Assembly of the United Nations. Iranian currency has deteriorated by more than 4% in less than twenty-four hours, while thousands of workers complaining of unpaid salaries, and increasing unemployment, inflation and record highs. Government initiatives have failed to maintain the value of the riyal and also on the level of oil exports. But Iranian leaders have ruled out with any decline in their position on their nuclear program controversial in order to obtain the lifting of sanctions, and this position is expected to renew Ahmadinejad emphasized strongly today. For his part, Ayatollah Ali Khamenei, Leader of the Islamic Republic, the country adopted a «economy resistance to the sanctions that the United States wants and European countries in tightening soon.

Iranian officials asked the media not to focus on local economic difficulties, but an emphasis on successes. However, the difficulties stand out more and more, especially because of the boycott oil and banking sanctions which were imposed by the United States and European Union countries. Said Conservative MP prominent Mohammad Reza Bhonar, during the weekend, that Iran issued in June and July «about 800 thousand barrels of oil per day» for about 2.3 million barrels a year ago, according to the Student News Agency (ISNA) . And is expected to increase slightly due to exports South Korea’s decision to resume its purchases of Iranian oil.
The president acknowledged Ahmadinejad himself that Iran faces ‘problems’ in the sale of its oil resources, which generates half the government’s budget. However, he stressed that the country know how to face the situation, but the people are suffering directly sanctions, especially due to the surge in prices of food products. According to the news agency labor (Elena), nearly 20 thousand workers and directed a letter to the Minister of Labour and Social Affairs, Abdul Redha al-Islam, complaining about the unpaid salaries and demanding an increase pension of $ 120 to $ 285, adding that they «below the poverty line». In the poorer social classes, forced many Iranians to refrain from traveling abroad because of the deterioration of the value of the national currency. She drew an employee at a small travel agency that «Iranians who travel abroad will go now to the island of Kish or Alaaranian scene. The ring Chairman of the Shura Council, Ali Larijani, alarm, Larijani said, as quoted by the agency «Esna», «According to the statistics, there is a significant rise in unemployment. Must find a solution. Also, the rate of inflation officially reached 22%, a figure that is too high and more in some areas. Said Assistant U.S. Treasury Secretary-designate financial intelligence and counter-terrorism, David Cohen, two weeks ago, said that economic sanctions began «strangle the Iranian economy. He explained that the decline in oil exports cut Iran «up to five billion dollars per month, forcing the government to do budget cuts. Seeks France, Britain and Germany to adopt new sanctions on October 15 (October) on the sectors of energy, finance, trade and transport to tighten pressure on Tehran.

Furthermore, European diplomats said yesterday that the EU is considering a proposal to Britain to impose sanctions on Iran, calling – in particular – to impose a ban on shipping and freezing ‘full’ financial dealings with Iran’s central bank. A European diplomat said, asking not to be identified, said that «most Member States supported the proposal. He added that «Discussions are ongoing, and still had plenty of time to finish. And called for all of Britain, France and Germany the European Union, last week, to increase pressure on Iran over its nuclear program and agree on new sanctions, to be ratified in his talks and European Union foreign ministers بلوكسمبورغ on October 15 (October). The proposal is currently being discussed Britain, which emphasizes the current punitive measures in four areas, namely: finance, trade, energy, and transportation. The Netherlands has introduced similar ideas.

A European diplomat said that among the harshest penalties contained in the British proposal, «impose a complete freeze on Iran’s central bank and on all financial transactions, as well as« a broad ban on shipping. However, some European countries, including Spain, Sweden, the fear that this freeze will reach the degree of the trade embargo, but the diplomat said that he is not up to such a degree. He added that France and Germany «need reassurances. She had been drafted sanctions imposed by the European Union is on the Central Bank of Iran to ensure they do not affect the freezing of assets on trade between the 27 EU countries and Iran. States fear that shipping sector is one of the key sectors, such as Denmark, Greece, from a ban on shipping.
Source: altahreernews