Iran’s Currency Falls To A New Low As Nuclear Sanctions Squeeze Its Ailing Economy
TEHRAN, Iran (AP) — Iran’s rial currency fell to a new low of 1.2 million against the U.S. dollar on Wednesday. nuclear sanctions squeeze Tehran the economy collapsed.
Traders offered the new exchange rate as attempts to restart talks between America and Iran over its nuclear program appear to have stalled so far.
The new record low comes as increasing pressure on food prices and other costs makes daily life much more challenging for Iranians. Prices of meat, rice and other staples have soared on the Iranian dining table.
Meanwhile, people are worried about a new wave of conflict between Iran and Israel, and potentially the United States, following the 12-day war in June.
“Not only will life become harder for ordinary people, but limited foreign exchange inflows caused by sanctions will increase public concern about whether the government has the resources to maintain and repair the country’s aging infrastructure,” said Ali Moshtagh, a 53-year-old electrical engineer.
Iran’s economy has been severely affected by international sanctions, especially after US President Donald Trump unilaterally withdrew America from Tehran’s nuclear deal with world powers in 2018. The rial was trading at 32,000 per dollar at the time of the 2015 deal, under which Iran greatly limited its enrichment and stockpiling of uranium in exchange for the lifting of international sanctions.
Trump restarted his so-called “maximum pressure” campaign against Tehran with sanctions after returning to the White House for a second term in January. He went after you again Companies trading Iranian crude oil, Including those selling at a discount in China.
In late September, the United Nations reimposed nuclear sanctions on Iran through diplomats imposing sanctions on Iran. “withdrawal” mechanism. These sanctions once again freeze Iran’s assets abroad, halt arms deals with Tehran, and punish any development of Iran’s ballistic missile program, among other measures.
