Iranian Rial crashes due to the US sanctions and Coronavirus pandemic

Tehran: – There was a major crash reported in the value of Iranian Rial in view of the sanctions imposed by the United States in the last month, the Coronavirus crisis and the slump in the international oil markets. Local sources informed on Saturday that the Iranian Rial was exchanged at the rate of 193,400 Rials to a US dollar. This development confirms the claims that the Iranian economy has hit rock bottom.

Only last month, the United States tightened the noose of sanctions around Iran, accusing it of violating the Civilian nuclear agreement. At this time, the United States withdrew the last concession available to Iran, according to the nuclear deal signed in 2015. This brought the assistance given to the Iranian Arak nuclear project by countries like Russia, China and the European countries under the ambit of US sanctions. The United States accused that Iran was utilising the civilian nuclear project for its military objectives.

The special US envoy for Iran, Brian Hook, informed that the United States had increased the pressure on Iran with the new sanctions. The US envoy had also warned that if Iran is interested in any respite from the sanctions, Iran should come forward for negotiations with the United States, or else be prepared to see its economy in ruins, under the effect of these sanctions. But Iran had dismissed the US proposal. Iran had retorted that the US efforts to shut down the Iranian nuclear program have proved to be futile.

Coronavirus pandemic hit Iran in February, and more than 9,500 deaths have been reported from Iran. The number of Coronavirus cases has crossed 200,000, and the government seems to have miserably failed to contain the pandemic. The Iranian government has tried to blame the United States, claiming that it is unable to deliver health services to the people of Iran due to the sanctions imposed by the United States.

But at the same time, Iran has refused to retreat on the nuclear program front and is also continuing to support the terrorist organisations in Syria, Yemen and Iraq. Iran is also continuing with the supply of large quantities of crude oil to Venezuela, another country facing US sanctions. But this same Iranian government has miserably failed to provide any consolation to the Iranian people on the economic level.  

The price rise index has jumped over 41% in the Iranian economy, and non-vegetarian products and other food grain prices have increased by 116%. The fiscal deficit in the Iranian economy also is said to have reached 60%. The crude oil demand and rates have crashed because of the Coronavirus pandemic, and there is no possibility of any help coming to Iran on that front.  

All these factors have affected the valuation of the Iranian Rial, and the rate of the US dollar increased by a whopping 50,000 Rials. In February, it was 140,000 Iranian rial to a US dollar. But as of today, one has to shell out 193,400 Iranian Rials to buy a US dollar. The local sources claimed that the value would crash further to 200,000 Iranian Rials to a US dollar in the next few days.

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