Iranian Currency Falls To Record Low Amid Sanctions, Protests

The Iranian currency has hit a record low against the U.S. dollar amid the country’s increasing isolation, a worsening economic situation triggered by years of sanctions and political instability sparked by the ongoing nationwide protests.

On February 16, the dollar went past the 475,000-rial mark for the first time on the open market. The currency lost more than 30 percent of its value since the eruption of the anti-government protest in September.

According to reports from financial news agencies, the euro rose to 510,150 rials and the British pound was trading at 574,000 rials.

With an annual inflation rate reaching about 50 percent, Iranians have been scrambling to convert their savings into hard currencies or gold.

The Donya -e- Eghtesad newspaper blamed the recent fall of the rial on Ned Price, the spokesperson of the U.S. State Department, who said there were currently no negotiations with Tehran to revive the 2015 nuclear agreement between Iran and world powers.

Under the deal, most international economic sanctions were scrapped in exchange for limits to Tehran's nuclear program.

But former President Donald Trump withdrew the United States from the agreement in 2018 and reimposed harsh economic sanctions on Iran, prompting Tehran to resume nuclear activities prohibited by the nuclear pact.