Tehran: The Iranian economy, which is already in trouble because of the economic sanctions imposed by the United States is facing a new and even more difficult challenge. The lurking fear of fresher and harsher sanctions by the United States has triggered a record drop in the value of the Iranian Rial, which sunk to the level of 112,000 rials to one USD. The trading community in Iran had protested against the Khamenei government after it devalued the Iranian Rial last month. Therefore, now that the Rial has hit a rock bottom price, severe reactions are expected from the Iranian people.
The Iranian government media have not disclosed this information about this slide in the Rial. But this information l was revealed by an agency, keeping a close watch on the Iranian share market. On Saturday, the position was 98,000 Rial to 1 USD. The Rial, which declined to 112,000 to a USD recovered to 102,000 Rial per USD by the end of the day. There is a possibility being predicted that the Rial will slide further on the opening of markets on Monday and a decline to 125,000 Rial to 1 USD is expected.
The slide in the currency value of Rial started after US President Donald Trump threatened withdrawal from the Iran nuclear deal. In the month of January, the value of Rial was 35,186 to 1 USD, whereas, in the month of March, it dipped to more than 50,000. In the month of April, the Iranian government assured that the price of the Rial will not be allowed to fall below 42,000 Rial to a USD. The government also announced action against the people involved in black marketing in Iran. Despite this, the Iranian Rial continued to slide and the analysts and traders are blaming this slide on the wrong policies of the Iranian government.
The Iranian people are complaining that the government is not taking enough measures to save the sinking Iranian Rial. Protests had been held against the Khamenei Rule, last month, by the Iranian traders and common people in the capital Tehran, after closing the Grand Bazar. The Iranian people had shouted slogans against the government during the protests, which lasted for five days. Agitated by this, the Iranian government had ordered action against the protestors.
The Iranian security agencies succeeded in stopping the protests by detaining the protestors. But it has become apparent that the people and traders in Iran have started converting their savings and investments into USD, recognising that the Iranian economy is heading for a disaster. Some of the traders have even indicated the use of the digital bit-coin- crypto-currency, due to the fear of fresh US sanctions. A senior Iranian official gave this information. Therefore, the belief of the Iranian people in their currency seems to have shaken.
Meanwhile, two months ago, President Trump withdrew from the Iran nuclear deal. At the same time, the US President had also suggested to the European countries to withdraw from the deal. Trump had suggested that Iran should sign a fresh deal, accepting the conditions laid down by the US. President Trump has given a deadline up to the 6th of August for this. Trump had warned that if the proposal is not accepted, fresher and harsher sanctions will be imposed on Iran, which will have its impact on the European companies dealing with Iran. The fear of this situation is causing the slide in the Iranian currency.