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Iranian rial hits rock bottom
On March 25, Iran's currency decided to surprise everyone by setting a new record, falling to more than one million rials per US dollar. Now, to feel like a millionaire, all you need is to arrive in Iran with just one dollar in your pocket.
The dollar's value in Iran skyrocketed by about 50,000 rials within a few hours, reaching a mind-boggling 1,036,000 rials per dollar. Although this achievement is unlikely to make Iranians happy, tourists can now proudly tell their friends that they were millionaires, at least once in their lives.
The rapid depreciation of the rial is due to new US sanctions on Iran's oil exports. As a result, it has become more difficult and expensive for Iran to sell oil to China. This measure is already taking its toll on Iran’s economy.
Adding fuel to the fire is the renewed tension in the Middle East related to Israel's actions against Hamas. Against this backdrop, oil prices, which had been hovering around $70 per barrel, have picked up steam, reaching $72.76 per barrel.
In February, US President Donald Trump reintroduced the "maximum pressure" campaign on Iran, attempting to force Tehran back to the negotiating table on its nuclear program. Meanwhile, Tehran exercises caution, opting to communicate with the White House through intermediaries, but the incredible weakness of the national currency may persuade Iranians to revise their tactics.
© InstaFintech Group
