Economic Update: Iranian Rial Hits Record Low
The Iranian rial has experienced a significant decline, reaching an all-time low against the US dollar on Saturday. This drastic drop follows the Supreme Leader Ayatollah Ali Khamenei’s firm rejection of negotiations with the United States and the announcement by President Donald Trump regarding the re-introduction of a “maximum pressure” strategy against Tehran.
According to foreign exchange data, the rial plummeted to 892,500 against the dollar in the informal market, a decrease from 869,500 riyals the previous day. Different sources reported varying prices for the dollar, with one indicating sales at 883,100 riyals, while another quoted 891,000 riyals.
In light of official inflation rates hovering around 35%, many Iranians are seeking refuge for their savings by investing in the dollar, gold, and cryptocurrencies, underscoring the ongoing challenges faced by the rial.
The dollar’s appreciation against the rial has been evident since it traded at approximately 690,000 riyals during Trump’s re-election campaign in November. The upward pressure on the currency is largely attributed to apprehensions surrounding the reinstatement of the “maximum pressure” policy and potential military action targeting Iran’s nuclear facilities.
The foundation for these sanctions was laid in 2018 when Trump withdrew from a nuclear agreement established by his predecessor, Barack Obama, in 2015, which had previously curtailed Iran’s capacity to enrich uranium—a critical step in developing nuclear weapons.
Since the re-imposition of sanctions in 2018, the Iranian rial has depreciated by more than 90%, highlighting the severe economic challenges the country continues to face.
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