Ahmadinejad admits Western sanctions have taken their toll on Iran as country’s economy is on verge of collapse

Iran’s president has blamed the steep drop in Iran’s currency on 'psychological pressures' linked to Western sanctions.
Admitting for the first time that sanctions over Iran’s nuclear programme are taking their toll, Mahmoud Ahmadinejad highlighted concerns over his country’s economy.
In the past few days Iran’s currency, the rial, has lost more than half its value against the U.S. dollar.

 

Under pressure: President Mahmoud Ahmadinejad, pictured speaking at the General Assembly at U.N. headquarters in New York City last week, blames Western sanctions for the dip in Iran's economy

It has prompted fears that the economy is on the verge of collapse, cripple by sanctions which means Iran has lost markets where it can export oil. The price of goods has also risen, as many have to be imported.
The U.S. and its allies have imposed the punishing measures in attempts to force Iranian concessions over its nuclear programme, which the West says is aimed at developing atomic weapons. Tehran insists it is for peaceful purposes.

 

An Iranian parliament member, Mohammad Bayatian, was quoted on the chamber’s website, as saying that enough signatures have been collected to force Ahmadinejad to face questioning before lawmakers over the currency’s tumble.
The Parliament speaker Ali Larijani said that '80 per cent' of economic problems were linked to government mismanagement and the rest to sanctions.

 

President Ahmadinejad faced demonstrations from anti-nuclear groups during his stay in New York last week and has admitted the pressure from the United States and its allies has affected Iran's economy

'The speaker should help the government overcome the problem instead of accusing the administration,' Ahmadinejad said.
Larijani is among the possible candidates for next June’s presidential elections that will pick Ahmadinejad’s successor.
Iran’s currency fell again today, hitting a record low of 35,500 rials against the U.S. dollar on the unofficial street trading rate, which is widely followed in Iran.
On Sunday it was 29,500 rials to the dollar. Two years ago, it was close to 10,000 rials for $1.
'Are these (currency) fluctuations because of economic problems? The answer is no,' Ahmadinejad said.
'Is this because of government policies? Never ... It’s due to psychological pressures. It’s a psychological battle.
'The enemy is making pressure by playing with (exchange rate) numbers in the street.'
Ahmadinejad described the sanctions as part of a 'heavy battle' that has succeeded in driving down oil exports 'a bit,' but he gave no precise figures.