File photo of an exchange shop in Iran

Iranian Currency Continues To Tumble In Wake Of Elections

Tuesday, 03/05/2024

Iran's currency continued to plummet on Tuesday, with the US dollar surging to 610,000 rials as the currency hits all-time lows in the wake of the country's sham elections.

It marks a downward trend for the currency which has continued to fall since Friday's polls. The dollar has doubled against the rial since March 2022 after Iranian hardliners established control over the government and nuclear negotiations with the United States and its European allies failed to progress.

The rial, which has steadily fallen since the 1979 revolution, began a steep dive in 2018 when the United States withdrew from the JCPOA nuclear deal and imposed oil export as well as banking sanctions on Iran. The currency traded at 70 rials per dollar in 1978.

Contrary to the reality on the ground, in a meeting held a month ago, Ali Khamenei, Iran's Supreme Leader, praised the country's economic situation. He said, "We regret that the progress has not been explained to the people, and most of the nation is unaware of the efforts, successes, and innovations, which are among God's blessings."

The depreciation of the rial has exacerbated inflationary pressures in the past five years, with millions of people falling below the poverty line. Official government figures indicate more than 40 percent annual inflation, while many in Iran believe the real figure is higher.

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