Iran currency plunges to record low as US dollar breaks 2 million rials on open market
The Iranian rial plunged to a new open-market low on Sunday, with the US dollar surpassing 2 million rials on the open market as the country braces for additional American sanctions and diplomatic efforts with Washington remain stalled. The US greenback traded above 200,000 tomans in Tehran’s free market, according to currency-tracking channels. One toman equals 10 rials, putting the exchange…
The Iranian rial has plunged to a record low against the US dollar, with the currency trading at more than 2 million rials per dollar on the open market. This drop came after a 60-day period under a June 17 memorandum between the US and Iran expired without reaching a deal regarding Tehran's nuclear program and sanctions relief.
The US administration has since tightened its stance by reimposing a naval blockade of Iranian ports, rescinding oil-related sanctions waivers, and hinting at further punitive measures. Iran, in response, has threatened to keep the Strait of Hormuz closed until the US lifts the blockade, removes its sanctions, and releases Iranian assets frozen abroad.
The weakened rial will make imported goods more expensive, potentially fueling inflation and public discontent. Iran's government has hinted at a possible fuel price increase to cope with the rising costs. Former Iranian crown prince Reza Pahlavi criticized the country's economic situation in a social media post, urging Iranians to undermine the government.
The currency's decline is influenced by Iran's limited access to foreign currency, including oil revenue and frozen assets, coupled with ongoing diplomatic tensions with the United States.
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