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Iran Currency Drops to Lowest Value Ever amid US Sanctions

Iran Currency Drops to Lowest Value Ever amid US Sanctions

Sunday, 12 June, 2022 - 16:45
People walk on the sidewalk in Ferdowsi Street, Tehran, Iran, Sunday, June 12, 2022. (AP)

Iran’s currency Sunday dropped to its lowest value ever as talks to revive the country's tattered nuclear deal with world powers remained deadlocked.

Traders in Tehran exchanged the rial at 332,000 to the US dollar, up from 327,500 on Saturday. That marked more than a 4.4% change compared to June 1 when it traded at 318,000 to the dollar.

Iran’s currency was trading at 32,000 rials to the dollar at the time of Tehran’s 2015 nuclear deal with world powers.

The rial's new low came as US sanctions against the country are still in force. Iran’s economy is struggling mightily mostly because of the US pullout from the 2015 nuclear deal between Iran and world powers that restored sanctions on Iran’s oil and banking sectors. Talks in Vienna to renew the agreement have been deadlocked for months.

In central Tehran, dozens of shop owners took to the streets in protest over the worsening economic situation, after many shut their businesses following a recent rise in business taxes. Police were present in force, but did not intervene.

Meanwhile, police arrested 31 currency and gold traders accused of creating "false demand" in the market, state TV reported without elaborating.

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