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Iran's National Currency Falls To Record Low As Sanctions Continue To Bite

By RFE/RL's Radio Farda June 12, 2022

Iran's national currency fells to its lowest value ever against the U.S. dollar, hit by continuing U.S. sanctions as talks to revive the global 2015 nuclear deal falter.

The rial traded at 332,000 to the dollar on June 12, according to traders in Tehran and the Bonbast.com foreign-exchange website.

That made the dollar more expensive to buy from the quoted price of 327,000 rial the prior day. At the start of the month, the rial was at 318,000 to the dollar.

When the 2015 nuclear deal was signed with world powers, the rial was trading at 32,000 to the dollar.

The nuclear deal gave Tehran relief from financial sanctions in return for curbs on its nuclear program.

Then-U.S. President Donald Trump pulled the United States out of the deal in 2018 and reimposed stringent sanctions that have battered Iran's economy and its currency. After Washington withdrew, Iran began violating some of the pact's nuclear limits.

Trump said Tehran was violating the spirit of the agreement by funding extremist activity in the region and by continuing efforts to develop nuclear weapons.

Tehran denied it is supporting extremists and said its nuclear program is purely for civilian purposes.

President Joe Biden has indicated he is willing to return to the pact but has demanded Iran return to the terms of the original deal.

The sanctions and the subsequent fall of the rial have hit the Iranian economy hard, often leading to street protests in many cities followed by crackdowns by Iranian authorities.

The semiofficial Tasnim news agency reported that Iran's central bank hosted a group of foreign-exchange traders on June 12 to coordinate efforts to strengthen the rial.

In an effort to bolster its economy, Iran signed a 20-year cooperation plan with Venezuela on June 11.

The plan includes cooperation in the fields of oil, petrochemicals, tourism, and culture.

With reporting by AP and Al-Jazeera

Source: https://www.rferl.org/a/iran-currency- record-low/31894831.html

Copyright (c) 2022. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036.



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