ZCZC
BCN-11
IRAN-CURRENCY-POLITICS-ECONOMY
Iran’s rial hits record-low 100,000 to the dollar
TEHRAN, July 30, 2018 (BSS/AFP) – Iran’s currency hit a record low on
Sunday of 100,000 rials to the dollar amid a deepening economic crisis and
the imminent return of full US sanctions.
The unofficial rate stood at 102,000 rials by midday, according to
Bonbast, one of the most reliable sites for tracking the Iranian currency.
The rate was confirmed by a trader who spoke on condition of anonymity to
AFP.
The rial has lost half its value against the dollar in just four months,
having broken through the 50,000-mark for the first time in March.
The government attempted to fix the rate at 42,000 in April, and
threatened to crackdown on black market traders.
But the trade continued with Iranians worried about a prolonged economic
downturn turning to dollars as a safe way to store their savings, or as an
investment in the hope the rial will continue to drop.
With banks often refusing to sell their dollars at the artificially low
rate, the government was forced to soften its line in June, allowing more
flexibility for certain groups of importers.
The handling of the crisis was one of the reasons behind last week’s
decision by President Hassan Rouhani to replace central bank chief, Valiollah
Seif.
The currency collapse was encouraged by the US announcement in May that it
was pulling out of the 2015 nuclear deal, that lifted certain sanctions in
exchange for curbs to Iran’s atomic programme.
The US is set to reimpose its full range of sanctions in two stages on
August 6 and November 4, forcing many foreign firms to cut off business with
Iran.
BSS/AFP/HR/0950