Protests in Iran over a plummeting currency and inflation fears continued for a second day in the capital, despite attempts by security forces to disperse crowds with volleys of tear gas.
RFE/RL’s Radio Farda reported on December 29 that crowds of people were seen chanting slogans about the economic situation and against the government at gatherings at the Grand Bazaar -- where many merchants had closed their shops -- and elsewhere in central Tehran.
Amid signs of the economy collapsing under the weight of international sanctions, Iran’s currency plummeted to record lows on foreign exchange markets.
Central Bank Head Stepping Down
Amid the turmoil, Iranian media reported that the head of the central bank, Mohammad Reza Farzin, had decided to step down. A spokesman for President Masud Pezeshkian said the bank chief, who held the position since December 2022, would be replaced by former Economy Minister Abdolnaser Hemmati -- who was sacked by lawmakers in March.
The Iranian rial is trading at around 1.4 million to the dollar, compared to around 800,000 a year ago, on unofficial markets. Official exchange rates are better but unavailable to many Iranian individuals and businesses.
Many stores have closed as traders shuttered their businesses in protest and joined the demonstrations.
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Mass Protests, Business Closures In Tehran Over Dire Economic Situation
'Death To The Dictator' Chants
There were also reports of crowds chanting “death to the dictator,” a slogan often heard during the mass nationwide Women, Life, Freedom protests that shook Iran in 2022. Videos showed clashes with security forces using batons and tear gas.
In an unusual move, domestic state media, including TV and radio, also reported on the protests.
The Fars news agency acknowledged they were taking place at several locations in Tehran, noting that people were chanting political slogans.
“These gatherings could become a new platform for the activities of the cells of unrest,” said Fars, which is affiliated with the Islamic Revolutionary Guards Corps (IRGC), warning of “insecurity” and “destabilization.”
SEE ALSO: Iran's Missiles In Focus As Netanyahu Heads To WashingtonThe ISNA News Agency reported that foreign exchange offices were closed due to volatile market conditions.
“Most exchange houses expressed concern and discomfort over the relative closure of the market due to the severe fluctuations,” it said.
Deputy Interior Minister Ali Akbar Pourjamshidian told ISNA that traders needed to have “patience, tolerance, and support and not allow psychological operations to inflame the market atmosphere.”
On December 28, Iran’s statistics office announced that inflation had reached 52 percent. The same day, Pezeshkian delivered the state budget to lawmakers, vowing to fight inflation and the high cost of living.
Iran’s economic situation has worsened amid ongoing US sanctions, as well as UN sanctions reimposed after Iran failed to resume negotiations with Washington over its nuclear program and stopped cooperating with the International Atomic Energy Agency.
In September, when the UN sanctions were reimposed, a Radio Farda listener sent a message stating that inflation was already “out of control.”
Another listener said: “People change how they save and how they indulge themselves…[and inflation] puts pressure on markets like gold and the dollar.”