A Chinese-style construction and consumption boom in the capital Tehran has started to sour. One third of the shops at the Laleh Shopping Centre in central Tehran have closed in recent months. Merchants said demand has held up only cars and mobile phones, where new products are available to replace antiquated models.
Far from resenting the US-designed sanctions, Iranians blame the slowdown on the government. “Nuclear energy is something that I supported but why go about it in this way,” asked Zori Baghi, a pensioner and father of two. “If it is legitimate, then why are we suffering for it in this way. If it’s not legitimate, then do it in the right way or give it up. We’re paying too heavy a price.”
Central Bank of Iran figures reveal a huge drop in financial reserves despite massive earnings from oil exports. In the first nine months of last year foreign exchange holdings dropped $13.8 billion (£9 billion) to $77 billion. Some economists believe that foreign exchange reserves may not cover the annual cost of imports.
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