No relief for Rial: Iranian currency sinks to record low as US works on new sanctions
The Iranian rial has reached a record low amid escalating tensions with the U.S. and ongoing regional conflict. Washington is preparing further economic sanctions while Iran and Oman negotiate a joint management plan for the Strait of Hormuz.
Why it matters
The currency collapse and potential sanctions significantly impact global oil markets and geopolitical stability in the Middle East.
Iran’s rial hit rock bottom on Monday, falling to a record low as Washington prepared what it called an “economic D-Day”. The fresh sanctions are set to pile more pressure on an economy already battered by existing restrictions and a US naval blockade.The rial fell to 2.02 million against the US dollar when informal currency markets opened. While Iran’s official Central Bank rate was around 1.5 million rial to the dollar, the informal market rate is the one most Iranians pay.The currency was already in trouble before the US and Israel attacked Iran on February 28, with the economy facing double-digit inflation and negative growth. Nearly six months of war have since pushed the rial to fresh record lows.But the currency’s slide has not translated into the concessions US President Donald Trump has been seeking from Tehran.
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