Source: Dubai – Masoud Al Zahid
The Iranian riyal recorded a historical decline against the US dollar, recording a low value of 210,000 Iranian riyals per dollar.
And the Iranian riyal suffered significant losses foreshadowing a deeper collapse of the riyal, or (a toman equivalent to 10 riyals), thus bringing the currency to a historical stage of continuous decline since the United States computed the nuclear agreement.
The price of the dollar in the free market at the time of writing this report was 21 thousand and 30 tomans, at 210 thousand riyals against one dollar.
The price of the Iranian currency was 38,000 riyals per dollar when Trump withdrew from the nuclear agreement, and a day after the withdrawal he plunged to 64,000 riyals.
After that, the Iranian currency remained at its lowest level whenever the United States imposed sanctions, package after package.
And remains the official price on the website of the Central Bank of Iran tweet out of tune by insisting on 42,000 riyals per dollar, a price very far from reality is not recognized by the market.
According to foreign exchange market analysts, the main reason for the increase in the exchange rate is the depreciation of the national currency due to high inflation and interest rates.
And the journey began to crumble the Iranian currency with the return of the US sanctions, and the severity of the decline finally increased with Tehran being rebuked by the International Atomic Energy Agency of the United Nations, which increased the pressure resulting from the American sanctions and the spread of the Corona virus.
The International Atomic Energy Agency’s (IAEA) Board of Governors, which includes 35 countries, has called on Iran to stop preventing IAEA inspectors from entering two ancient nuclear sites, which has increased diplomatic pressure on Tehran.
US President Donald Trump withdrew from an international agreement aimed at curbing Iran’s nuclear program in May 2018, and reimposed sanctions that ravaged its economy.
The economic crisis in Iran has been deepened by lower oil prices and a slowing global economy.
Abdel Nasser Hemti, Governor of the Central Bank of Iran, said that the psychological impact of the IAEA decision on the riyal is exaggerated, and that the Iranian economy can adapt to the additional pressures.
The riyal lost more than 70% of its value over several months until it reached low levels in excess of 207 thousand riyals per dollar.
The Iranians are scrambling to sell the local currency, because of its declining value, with the heightening of tensions fueled by Tehran in the region, and the increase in crisis at the regional level, exacerbating the risks that dominate the Iranian economy.
And the political and economic instability increases, exacerbating the heavy demand for the dollar among Iranians who fear to secure their needs, as Iran’s oil exports shrink, and its economy is affected by the sanctions.