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Iran’s currency has set another historic low by plummetting past 1,000,000:1 v. the US dollar.
The rial was 1,004,400:1 at noon Tehran time.
The rial stood at 45,000:1 in early 2018, before the imposition of comprehensive US sanctions and the Trump Administration’s withdrawal from the 2015 nuclear agreement.
The currency suffered sharp falls in 2020 during the Coronavirus pandemic and in 2022 amid nation protests. Its current plunge was triggered not only by long-standing economic protests but by the sudden fall of Iran’s ally Bashar al-Assad last December. Since then, the rial has fallen almost 30%.
The plummet has fed inflation. Officially, prices are rising by just over 35% annually. But unofficially, the surge is much higher, particularly for food and other essentials.
Production and investment are also being affected, as the centrist Pezeshkian Government — elected last spring — is embattled by hardline opponents.
In early March, Parliament forced out Finance Minister Abdolnaser Hemmati as well as Vice President Mohamma;d Javad Zarif, who as Foreign Minister was central to the 2015 nuclear deal with the 5+1 Powers (France, Germany, Italy, China, Russia, and US).
Iran’s State media has made no reference to the rial’s breaking of the 1 million mark.
A low value currency is good for exporters, and helps the government balance its budget, but is bad for importers, travelers and savers.
Let’s see how the rial lost its value over the years.
1. When Khatami left office it was 10,000 rs to the USD.
2. When Ahmadinejad left office it was 30,000 rs to the USD.
3. When Rouhani left office it was 300,000 rs to the USD.
4. When Raisi died in an accident, it was 600,000 rs to the USD.
It is clear that Rouhani is the person most responsible for the fall of the rial.