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Iranian Rial Hits Record Low against Dollar

A money changer holding foreign banknotes at the Grand Bazaar in Tehran. (Reuters)
A money changer holding foreign banknotes at the Grand Bazaar in Tehran. (Reuters)
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Iranian Rial Hits Record Low against Dollar

A money changer holding foreign banknotes at the Grand Bazaar in Tehran. (Reuters)
A money changer holding foreign banknotes at the Grand Bazaar in Tehran. (Reuters)

The Iranian rial hit a historic low against the US dollar on Monday as the country’s economy continues to crumble.

The rial has lost around 15 percent of its value on the open market in the past three days, bottoming at 128,500 to the dollar by Monday evening, according to Bonbast.com, which monitors Iran's rates.

The drop followed a speech by central bank governor Abdolnaser Hemmati on Saturday, in which he announced tighter restrictions on allocating foreign exchange reserves, said financial journalist Maziar Motamedi.

"Hemmati said that he wishes to be much more careful in allocating foreign currencies at government rates, signaling a potential forthcoming shortage of hard currency," he told AFP.

The rial has lost 70 percent of its value in the past year, primarily due to increased hostility from the United States and its withdrawal from the 2015 nuclear deal in May.

Official statements have done little to calm the markets.

Hemmati, who took over in August after his predecessor was sacked, "seems to have had a point when he said in (his inaugural speech) that he will try to minimize public remarks, as every comment coming from high-ranking officials aiming to calm the market has spurred negative reactions," said Motamedi.

The central bank has tried to calm the market, first by trying to end open-market trading in April, fixing the rate at 42,000 and shutting down exchange shops.

But that only sparked huge speculation and corruption on the black market, leading the government to sack the central bank chief and reverse the April measures.

Last week, Iran’s parliament sacked the minister of economic affairs and finance. In early August Iranian lawmakers voted out the minister of labor.

Protests linked to the tough economic situation in Iran erupted last December, spreading to more than 80 cities and towns and resulting in 25 deaths.

Sporadic protests, led by truck drivers, farmers and merchants in Tehran’s bazaar, have continued since then and have occasionally resulted in violent confrontations with security forces.

A set of US sanctions targeting Iran’s oil industry is due to take effect in November.

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Saudi Cement Sales Top $800 Million in Q1 Despite Profit Dip

Inside the factory of Saudi Cement company (company's website)
Inside the factory of Saudi Cement company (company's website)
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Saudi Cement Sales Top $800 Million in Q1 Despite Profit Dip

Inside the factory of Saudi Cement company (company's website)
Inside the factory of Saudi Cement company (company's website)

Saudi Arabia’s cement sector delivered strong top-line growth in the first quarter of 2025, with total sales surpassing $800 million (SAR3 billion), reflecting an 8.5% year-on-year increase.

However, rising operational costs weighed on bottom lines, with industry-wide net profits slipping 16.3% to $182 million (SAR648 million), down from SAR774 million a year earlier.

Among the 14 publicly listed cement producers on the Saudi exchange, 13 posted net profits during the first quarter. The exception was Al Jouf Cement, which recorded a loss of SAR 15.2 million. The company attributed its ongoing losses to rising production expenses, increased marketing costs, and higher financing burdens.

Yamama Cement emerged as the most profitable firm, reporting SAR142 million in net income, a 23.5% jump from Q1 2024. The company credited the gains to both increased sales volumes and improved average selling prices.

Saudi Cement posted the second-highest profit at SAR108 million, though this represented a 4.7% decline year-on-year. The drop was attributed to lower sales volumes, declining revenue from secondary sources, and higher general and administrative expenses.

Qassim Cement ranked third, with SAR94 million in profit, up 26.8% from the same period last year. The company cited stronger sales and reduced operating costs, including sales and administrative expenses.

According to Dr. Suleiman Al-Khalidi, a financial analyst and member of the Saudi Economic Association, the Q1 performance reflects improving conditions for the cement industry after years of volatility. “We are witnessing signs of stabilization, with companies optimizing operational costs and improving efficiency,” he said.

Al-Khalidi forecasts steady growth in domestic cement demand, driven by large-scale infrastructure initiatives tied to Vision 2030, such as NEOM, Qiddiya, and the Red Sea Project. He also pointed to upcoming global events and housing expansions as key demand drivers.

He noted that ongoing market momentum may prompt mergers and strategic alliances within the sector, increasing competitiveness and scale.

Mohamed Omar, CEO of G World and a regional economic analyst, described the sector’s combined SAR656 million in Q1 profits as a sign of solid demand and improving market stability. “The growth is supported by a rise in mega-projects, public infrastructure investment, and a resurgence in the private construction sector,” he said.

Omar expects the positive trend to continue but cautioned that cement producers must remain agile in the face of rising energy and raw material costs. He urged companies to invest in energy-efficient and environmentally friendly technologies to sustain margins.