In a mix of currency wars, the Iranian rial is the latest currency to fall prey to the gnawing hands of the US dollar. The Iranian rial fell to a new low against the US dollar, crippling Iranian economic progress.
The Iranian rial notably fell by 610,000 tomans against the dollar. Described as a drastic decline documented by the Rial so far, the price drop signals a deterioration in Iran’s economic outlook, putting the country’s monetary prestige at risk.
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The fall of the Iranian rial
On March 24, the US dollar reached a historic high against the Iranian rial. The IRR saw a considerable decline when the dollar first exceeded the 610,000 rial mark.
Iran has faced intense sanctions and restrictions for decades that hamper its economic progress. The region is plagued by political instability and chaos. Political instability has further fueled economic disparities, leading to Iran’s global isolation.
Speaking on the recent decline in the IRR, renowned political expert Sarah Raviani shared on X her opinion on the recent decline in the valuation of the rial. She highlighted how the Iranian administration and economic situation are in a state of absolute ruin.
Raviani then explained how economic mismanagement and rising corruption are among the main causes of Iran’s monetary and strategic decline.
“Yesterday, the dollar broke a new record on the Iranian currency market, surpassing 61,000 tomans. This is its highest rate to date. Basic commodities are quickly becoming unaffordable and inaccessible for the Iranian people. Gross economic mismanagement and corruption under the Islamic Republic have had a profound impact on the Iranian economy.”
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Raviani quickly added another update describing how Iran’s system is failing. She explained how rising unemployment, inflation and corruption slowly seeped into space, eroding the nation on all sides.
“Gramping inflation, soaring unemployment and a severely devalued currency are glaring symptoms of this systemic failure and corruption. »
Iranian sanctions and monetary chaos
Iran has long been grappling with stringent sanctions imposed by the United States of America. It was in this region that the largest number of sanctions were imposed before Russia took power in 2022. The first round of sanctions was imposed on Iran in 1979 due to a seizure carried out by a group of Iranian students to destabilize the American embassy in Tehran.
The other set of sanctions was imposed on Iran primarily to curb the country’s illicit nuclear activities. Later, sanctions affected much of the Iranian administration regime, where interventions were carried out to target Iranian exports of oil, gas and petrochemicals.
Furthermore, over the years, the sanctions imposed on Iran have had serious consequences on the country’s economic situation. The currency’s fall was further compounded by growing political instability and stricter administration, adding to the growing woes of its citizens.
reference: watcher.guru