Iranian rial plummets to record low against dollar after UN reimposes sanctions

The Iranian rial plunged to its lowest level against the US dollar today, with trading around 07:30 GMT, following the reimposition of United Nations sanctions, according to multiple currency tracking platforms.

Unofficial black-market rates indicate that the dollar was exchanging for approximately 1.12 million rials, reflecting a sharp depreciation in the value of Iran’s national currency. Currency monitoring websites such as Bonbast and Alan Chand reported these rates, highlighting the immediate impact of renewed sanctions on the Iranian economy, reports Al-Rai daily.

The depreciation comes as the international community reinstates restrictions targeting key sectors of Iran’s economy, including oil exports, banking, and financial transactions, in an effort to enforce compliance with UN resolutions.

Analysts suggest that the sanctions have intensified pressure on the rial, which has already been experiencing volatility amid domestic economic challenges and inflationary pressures.

Traders and financial observers are closely monitoring the situation, as the sharp drop in the rial is expected to influence the cost of imports, fuel inflation, and affect everyday living expenses in Iran.

The move has also sparked concern among businesses that rely on foreign currency for international trade, potentially slowing down economic activity.

The market reaction underscores the sensitivity of Iran’s currency to geopolitical developments and international policy measures.

Observers note that sustained sanctions could continue to erode the rial’s value unless countermeasures are implemented by the Central Bank of Iran or through diplomatic negotiations to ease restrictions.

Follow The Times Kuwait on
X, Instagram and Facebook for the latest news updates