Iran’s currency hits new record low against US dollar
ERBIL, Kurdistan Region – Iran’s currency made another record loss against the US dollar on Sunday as a fresh round of sanctions looms.
The Iranian rial fell to 112,000 against the dollar, down from 98,000 to the dollar the day before. The currency has been losing value since the US announced its withdrawal from the 2015 Iran nuclear deal in May and began drafting a raft of new economic sanctions.
Last week, Iranian and US officials traded verbal blows.
On July 22, Iranian President Hassan Rouhani warned the US will face “the mother of all wars” if it continues to isolate Iran diplomatically and target its economy. “Do not play with lion’s tale,” he added.
“NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE,” Trump warned Rouhani.
Then on July 26, Qassem Soleimani, commander of the Islamic Revolutionary Guard Corps (IRGC)’s extraterritorial Quds Force, taunted Trump, saying America had failed in Afghanistan and would fail again if it attacked Iran.
The dispute will not be settled on Twitter or with sound bites, however. The US is hitting Iran where it hurts, using all its diplomatic and economic strength to isolate and squeeze Iran’s economy, particularly is oil sector, to force Tehran to abandon its nuclear ambitions and to stop interfering in regional affairs.
The Iranian regime is vulnerable to high inflation. There have been widespread protests in response to deteriorating economic conditions. On June 25, traders in the Iranian capital’s Grand Bazaar held a rare strike against the collapse of the rial on the foreign exchange market. At the start of 2018, many cities in Iran witnessed widespread protests against high inflation and economic hardship.
Although the purchasing power of Iranians has seriously declined, Iranian exports have boomed as foreigners are able to buy cheaper Iranian products. Non-oil exports from Kermanshah Province increased by 44 percent in the first four months of the Persian year (which began March 21), according to IRNA news agency.
While the plummeting Iranian currency has benefitted foreign buyers and Iran’s non-oil exporters, the reality for the majority in Iran is increasingly bleak.
The Iranian rial fell to 112,000 against the dollar, down from 98,000 to the dollar the day before. The currency has been losing value since the US announced its withdrawal from the 2015 Iran nuclear deal in May and began drafting a raft of new economic sanctions.
Last week, Iranian and US officials traded verbal blows.
On July 22, Iranian President Hassan Rouhani warned the US will face “the mother of all wars” if it continues to isolate Iran diplomatically and target its economy. “Do not play with lion’s tale,” he added.
US President Donald Trump responding with a raw, all-caps tweet that has divided diplomatic opinion.
“NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE,” Trump warned Rouhani.
Then on July 26, Qassem Soleimani, commander of the Islamic Revolutionary Guard Corps (IRGC)’s extraterritorial Quds Force, taunted Trump, saying America had failed in Afghanistan and would fail again if it attacked Iran.
The dispute will not be settled on Twitter or with sound bites, however. The US is hitting Iran where it hurts, using all its diplomatic and economic strength to isolate and squeeze Iran’s economy, particularly is oil sector, to force Tehran to abandon its nuclear ambitions and to stop interfering in regional affairs.
The Iranian regime is vulnerable to high inflation. There have been widespread protests in response to deteriorating economic conditions. On June 25, traders in the Iranian capital’s Grand Bazaar held a rare strike against the collapse of the rial on the foreign exchange market. At the start of 2018, many cities in Iran witnessed widespread protests against high inflation and economic hardship.
Although the purchasing power of Iranians has seriously declined, Iranian exports have boomed as foreigners are able to buy cheaper Iranian products. Non-oil exports from Kermanshah Province increased by 44 percent in the first four months of the Persian year (which began March 21), according to IRNA news agency.
Kurds from the Kurdistan Region of Iraq are taking advantage of the collapse of Iran’s currency to visit the country. The number of travelers crossing the border from the Kurdistan Region to Iran has risen by 26 percent, according to Azvar Mahmod, director of customs at Bashmakh border gate, who spoke to IRNA.
While the plummeting Iranian currency has benefitted foreign buyers and Iran’s non-oil exporters, the reality for the majority in Iran is increasingly bleak.