Iran: Coping with Sanctions The recent deal reached by Iran and the West has raised hopes of a better future for Iranians. Until then, Iranians will have to continue coping with the impact of Western sanctions on their economy A street vendor at the bazaar of Mashhad presents his goods to passers-by. Many of those peddling their wares struggle to make ends meet. Bozorg bazaar, the main bazaar in south Tehran. Banking operations with foreign countries are impossible due to the sanctions. Iranians have to use Dubai-run banks or Turkish banks for their money transactions. Women queuing to buy bread at a bakery in Mashhad. Many Iranians have changed their shopping habits, preferring to buy at the cheaper supermarkets rather than going to more expensive shops. Because many commodities are not available on the official market due to sanctions, the black market is thriving, providing Iranians with items that are in demand. An exchange shop for gemstones in Tehran. Many Iranians are investing in gemstones because the devalutation of the Rial, the Iranian currency, has left it practically worthless. Because of the sanctions, many people resort to exchanging dollars and euros illegally on the streets of the capital, Tehran. One of the most urgent problems facing the Iranian economy is the devaluation of the Rial. Over the past two years, it has lost nearly two-thirds of its value. Conservative estimates put inflation at 40 per cent. Bozorg bazaar, the main bazaar in south Tehran. The carpet industry is a very important pillar of the Iranian economy. However, export restrictions relating to sanctions are hitting profits hard.