Iranian rial's fall against dollar accelerates

Iran's national currency hit a new historic low on Tuesday, losing more than 76 percent of its value against the dollar since late 2017.

MENA

1 min read

The New Arab & agencies

26 September, 2018

The Iranian currency lost more than 76 percent of its value against the dollar [AFP]

The fall of the Iranian rial intensified on Tuesday as it hit a new historic low against the dollar after losing 12 percent of its value since the weekend.

The rial was trading at 165,000 to the dollar on Tuesday afternoon, according to the Bonbast website which monitors rates in Iran.

The national currency has lost more than 76 percent of its value against the dollar since late 2017, a fall analysts link to the decision by the United States to withdraw from the 2015 Iran nuclear deal.

The slump first started when US President Donald Trump threatened to quit the deal and reimpose economic sanctions in October 2017.

The drop intensified significantly after Trump officially pulled the US out in May and has persisted since then.

The first round of sanctions was reinstated in August and will be followed by a second round in November that will target Iran's vital energy sector.

Economic analysts believe the sanctions could push the Islamic republic into recession.

Measures taken by the authorities since April have failed to halt the fall of the rial, meaning that a surge in consumer prices appears inevitable.