World Bulletin / News Desk
Supreme Leader Ayatollah Ali Khamenei told Iranian officials on Wednesday to stop bickering over mounting economic woes as Tehran grapples with Western-imposed sanctions, voicing concern heightened by the collapse of the rial currency.
"The country's officials should know and accept their responsibilities and not blame each other," Khamenei said in a televised speech in the northeastern city of Bojnourd. "They should be united and sympathise with each other."
The rial plunged some 35 percent in the free market to a record low against the U.S. dollar over the 10 days to Oct. 2, reflecting a decline in Iran's oil income wrought by tightened West sanctions.
Iranian savers have rushed to convert their rials into hard currency, and riot police briefly clashed with crowds protesting against the rial's slide near Tehran's Grand Bazaar last week.
By selling its remaining petrodollars to importers of basic goods at state-controlled rates, the government could succeed in preventing the currency crisis from crippling the economy.
But the rial's depreciation has hurt the government's credibility and threatens to aggravate inflation, which is already officially estimated at around 25 percent and believed by private economists to be cresting much higher.
In his speech on Wednesday, Khamenei said: "The illogical s anctions of the West are barbaric," and he acknowledged that inflation and unemployment were pressing problems.
IRAN CAN WITHSTAND SANCTIONS, KHAMENEI SAYS
But he insisted Iran could withstand the sanctions and brushed off last week's street protests, saying they consisted of a few people setting trash cans on fire.
He added that Tehran's merchants should be praised for distancing themselves from the demonstrations.
Khamenei also denounced Western officials who thought the rial's plunge showed Iranian weakness. U.S. Secretary of State Hillary Clinton said last week that the depreciation arose from decisions by the Iranian government.
"Are we worse off or you? In the streets of major European countries there are demonstrations day and night ... The problems of the West are much more complicated than ours," Khamenei said, alluding to Europe's debt crisis.
"The West's economy is frozen. You are worse off and you are moving towards collapse and recession. These problems cannot bring the Islamic Republic to its knees."
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