Iranian currency dips to historic low amid sanctions, pandemic, foreign policy decisions
Iran has seen the rial’s value fall by almost half this year as the currency now stands at a record low against the US dollar, triggered by ongoing sanctions, coronavirus restrictions and, according to some experts, Iran's foreign policy adventures since the 1979 revolution.
Iran’s currency dropped to its lowest value ever against the US dollar last week amid crushing sanctions by Washington, a disastrous response to the coronavirus pandemic and a string of disjointed foreign policy efforts that have caused distrust in the regime and caused money to flee the country.
On Thursday, the rial fell to 300,000 to the US dollar; it had been at 262,000 only a few weeks before. That's an enormous drop from 2015, when the rate was just 32,000 rials to the dollar.
The rial's value has fallen almost in half this year, and 30% in the last three months alone. A portion of the drop is due to a major slump in oil prices and a downturn in the global economy triggered by the coronavirus pandemic.
Even before the pandemic, domestic consumption was the only thing going for the regime economically as heavy international sanctions were already hurting the country, said Alex Vatanka, the director of the Middle East Institute’s Iran Program. But the pandemic spiraled the situation into disaster.
