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Slideshow Images of September Follow Reuters Facebook Twitter RSS YouTube Read SpaceX rocket glitch puts satellite in wrong orbit | 09 Oct 2012 Scottish to vote on independence in 2014: minister 09 Oct 2012 Vice presidential debate could be a tale of two Ryans 8:59am EDT EADS, BAE call off world's biggest arms merger | 11:31am EDT Calls for oversight grow as meningitis death toll mounts 8:24am EDT Discussed 259 Romney’s strong debate showing puts Europe on edge 157 Obama and Romney battle over economy at debate 155 Weak U.S. labor market looms ahead of elections Sponsored Links Iran's Khamenei warns of government divisions after rial plunge Tweet Share this Email Print Related News Analysis: Iran government likely to win battle of wills over currency Tue, Oct 9 2012 Iran parliament may halt Ahmadinejad economic policy Sun, Oct 7 2012 Tehran's Grand Bazaar reopens, currency trade still frozen Sat, Oct 6 2012 As rial plunges, Congress looks at expanding Iran sanctions Fri, Oct 5 2012 Iran blames economic "conspiracy" as criticism grows Fri, Oct 5 2012 Analysis & Opinion So what is Romney’s foreign policy? Counterparties: Hyperinflation is so hot right now (in Iran) Related Topics World » Middle East Turmoil » Iran's Supreme Leader Ayatollah Ali Khamenei attends a meeting with Iranian nuclear scientists and managers in Tehran February 22, 2012. Credit: Reuters/Khamenei.ir/Handout By Yeganeh Torbati DUBAI | Wed Oct 10, 2012 9:32am EDT DUBAI (Reuters) - 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. His comments touched on divisions between Iranian government agencies and political factions exacerbated by the rial's fall over the past several weeks, fanning an atmosphere of crisis in the world's No. 5 oil-exporting state. "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 sympathize 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 October 2, reflecting a decline in Iran's oil income wrought by tightened sanctions imposed over its disputed nuclear program. 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. The debacle has fed criticism of President Mahmoud Ahmadinejad by political enemies eager to pin Iran's economic difficulties on his administration. Parliament speaker Ali Larijani, seen as a possible presidential candidate in elections next year, has been trading barbs with Ahmadinejad. Senior clerical figures close to Khamenei were fiercely critical of Ahmadinejad's economic management in sermons delivered at last week's Friday prayers, Iranian media reported. In his speech on Wednesday, Khamenei said: "The illogical sanctions 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, who as a class were instrumental in the 1979 Islamic Revolution, 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, an allusion to Tehran's refusal to curb its nuclear program. "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." Legislators announced on Wednesday that they had collected 102 signatures in favor of questioning Ahmadinejad in parliament and presented the motion to the deputy speaker. But there was no word on when this might happen. Political infighting is not new in Iran's ungainly multipolar power structure and there is no sign that the discontent poses a threat to Khamenei, who is Iran's highest authority but has avoided blame for economic problems. However, there are signs that government agencies are taking aim at each other over the crisis and this could backfire badly if it restricts Tehran's ability to respond to economic issues. Armed forces chief Hassan Firouzabadi said this week the central bank was primarily responsible for the currency crunch. "The problems in the last few days were caused because some in the banking system did not pay attention and the central bank took some issues lightly," Firouzabadi said on Monday, according to the Fars news agency. Intelligence Minister Heydar Moslehi was quoted as blaming the rial's descent on poor coordination between government bodies and a government failure to heed predictions made by his ministry as long ago as April 2011, Mehr news agency said. (Additional reporting by Zahra Hosseinian; Editing by Andrew Torchia and Mark Heinrich) World Middle East Turmoil Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (2) americanguy wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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