DUBAI, Dec 14 (Reuters) – Iran’s currency, the rial, plunged to a historic low against the U.S. dollar on Saturday as economic uncertainties mounted, fueled by escalating tensions with Western nations over Tehran’s nuclear program and apprehensions regarding Donald Trump’s potential policies if re-elected.
On the unofficial market, the rial weakened to 756,000 against the dollar, down from 741,500 rials the day before, according to exchange rate tracker Bonbast.com. Another popular platform, Bazar360.com, reported similar rates of around 755,000 rials.
Facing soaring inflation officially pegged at 35%, many Iranians have sought refuge in alternative assets such as U.S. dollars, gold, and cryptocurrencies to preserve their savings. This flight to safety signals a grim economic outlook for the rial amid persistent headwinds.
The rial’s downward spiral, which began in early November when the currency traded at approximately 690,000 to the dollar, reflects growing fears of renewed sanctions. Speculation is rife that if inaugurated in January, Trump could revive his “maximum pressure” campaign against Iran, including harsher economic sanctions and empowering Israel to target Iran’s nuclear facilities.
The currency’s decline accelerated after the International Atomic Energy Agency (IAEA) passed a European-backed resolution against Tehran. The resolution has heightened the likelihood of new sanctions, further rattling Iran’s already fragile economy. Compounding the situation is the recent political shift in Syria, where the fall of President Bashar al-Assad—a key ally of Iran—has added geopolitical pressure on Tehran.
Iran’s economic challenges date back to 2018 when Trump withdrew the U.S. from the 2015 nuclear agreement brokered under President Barack Obama. The deal had imposed restrictions on Iran’s uranium enrichment capabilities in exchange for lifting sanctions. Trump’s subsequent reimposition of sanctions severely battered Iran’s economy, cutting its oil exports and driving the rial to historic lows.
As Tehran grapples with the fallout from these pressures, the nation’s economic stability remains precarious. The growing demand for hard currencies and alternative assets reflects deep public anxiety, with many bracing for even tougher days ahead.
This currency crisis underscores the enduring impact of geopolitical tensions on Iran’s economy, as the rial continues its slide against a backdrop of uncertainty and rising inflation.
