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Iran's Reeling Economy
(Wall Street Journal) Benoit Faucon - Iran's currency, the rial, lost a fifth of its value over the last two weeks of February to hit a record low. Inflation hit 59% late last year, with the cost of meat rising by 90%. The Americans also began cracking down on flows of hard currency from neighboring Iraq, removing an important pressure valve. Even with the new Saudi deal, Iran has few prospects for a turnaround unless it can escape sanctions over its nuclear program or build closer economic ties with China and Russia. With Nowruz, the two-week Persian New Year holiday that began Monday, middle-class Iranians found themselves with much diminished purchasing power for the holiday's feasts, and retired teachers, social security officials and military personnel were protesting economic conditions across the country. Crucially, the government is now finding it harder to maintain subsidies for food and energy and can't afford to increase wages for civil servants.