Iran’s currency has again plunged to an all-time low.
Amid persistent economic problems and political and military challenges at home and abroad, the rial has renewed its slide of the the past six years, losing almost 7% in recent days. At the close of business on Thursday, it stood at 646,000:1 vs. the US dollar.
That compares to 45,000:1 in early 2018, before a collapse spurred by comprehensive US sanctions. In October 2020, the rial reached 300,000:1. In November 2022, amid the Woman, Life, Freedom Protests, it sank past 400,000:1, and it broke 500,000:1 only three months later.
Central Bank intervention checked the slide but the rebound was temporary as a new low of 600,000:1 in March. Remedial steps restored a level of 510:1; however, the regional instabiity of Israel’s war in Gaza — compounded by Israeli assassinations of Iranian commanders — has again sapped confidence in the currency.
Iran’s leaders have yet to issue a statement about the latest currency shock.
In his Iranian New Year message on March 20, the Supreme Leader acknowledged, “The problems that people encountered with regard to the economy and their livelihood were some of the bitter events that we witnessed.”
Declaring that “the key to solving the country’s economic problems lies in production”, he offered no specific measures beyond the invocation, ” We must pave the way for the people to get involved in production in a tangible manner and remove the obstacles that stand in the way to their participation.”
That may influence a decision to hit back at Israel which would cause a further fall. Scott Ritter is right to state that the Iranian Quds force were reckless to convene a meeting in Damascus knowing that intelligence of their movements is relayed back to Israel which can hit the Syrian capital any time using stand off missiles. The Israelis are prepared to hit embassies and aid convoys alike: https://www.youtube.com/watch?v=xreTEjkJlQc
Meetings like that should have been held well underground (as Hamas has done so successfully). Really stupid unless it was a rival in the IRGC who tipped off the Israelis.