Iranian Rial Again Hits Record Low Amid Tensions With U.S.
Sanctions and the novel COVID19 outbreak have dealt a double blow to Iran's fragile economy.
ICBPS- Iranian Rial Value fell to a record against the U.S. dollar again as the tensions have spiked with Washington.
The Iranian Rial plummeted Sunday against the U.S. dollar to the nation’s lowest value ever.
The dollar was offered for as much as 273,000 Rials on the unofficial market on Sunday, up from 267,800 Rials on Saturday, according to foreign exchange website Bonbast.
Iranian national currency Rial lost more value again a day after the White House announced all the U.N. sanctions on Tehran had been reimposed.
Iranian Rial has lost about 49 percent of its value in 2020.
Not only because of sanctions, but — of course — mismanagement and economic and administrative corruption are the primary reason for the disorders.
Iran’s officials have [continuously] emphasized 80 percent of Iran’s problems caused by mismanagement and corruption, not sanctions.
Further, experts have predicted how the Tehran Stock Exchange crash could occur once the panicked investors begin to flee as they anticipate a collapse.
capital Tehran raised 27% at the same time. The rent price in Tehran has experienced a 31% rise in the fourth month of this year compared to the same month in the past year, reported the Central Bank of Iran (CBI).
Iran’s inflation rate is at an alarming rate again in August as the highest and lowest average annual inflation among 12 groups in the basket of consumer goods and services purchased by households were recorded for transportation (47.2%) and communications (6.4%).
The average goods and services Consumer Price Index (CPI) in the 12-month period ending August 21 advanced 30.4% compared with the corresponding period of the last fiscal year, according to the latest data released by the Statistical Center of the Islamic Republic of Iran (IRI).
The point-to-point inflation rate in August has increased by 3.5% compared to the previous month. The point-to-point inflation rate of the leading group of “food, beverages, and tobacco” also increased by 26%, and the group of “non-food products and services” increased by 32.6%.
Beverages, milk, cheese, and eggs had the highest increase among foodstuffs prices.
Iran’s trade value with Turkey has dropped by 67 percent in the first seven months of 2020. The value of trade between Tehran and Ankara fell 67 percent, compared to last year’s same period.
Tehran Chamber of Commerce Industries Mines and Agriculture (TCCIMA) put Iran-Turkey seven-months trade as $4.2 billion as the value has dropped 67 percent.
The COVID19 Coronavirus outbreak is another contributing factor to Iran’s economic collapse and its current monetary devaluation.
The U.S. economic sanctions and the novel COVID19 Coronavirus outbreak have dealt a double blow to Iran’s fragile economy.
Today, Iran faces immense challenges to its economy such as the devaluation of its currency, government budget deficits, high inflation, multiyear recession, debt, corruption, pension fund bankruptcy, and high unemployment rates — all of which have given rise to an economic crisis.
The Institute of Capacity Building for Political Studies (ICBPS) is a non-governmental research institute focusing on political studies, international security, and international relations.
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