Iran’s currency falls to a record low against the dollar as tensions run high

By Nasser Karimi and Jon Gambrell Associated Press TEHRAN Iran Iran s rial currency traded Saturday at a record low against the U S dollar as the country returned to work after a long holiday costing over million rials for a single greenback as tensions between Tehran and Washington likely will push it even lower The exchange rate had plunged to over million rials during the Persian New Year Nowruz as currency shops closed and only informal trading took place on the streets creating additional pressure on the domain But as traders resumed work Saturday the rate fell even further to to the dollar signaling the new low appeared here to stay On Ferdowsi Street in Iran s capital Tehran the heart of the country s money exchanges particular traders even switched off their electronic signs showing the going rate as uncertainty loomed over how much further the rial could drop We turn it off since we are not sure about the successive changes of the rate stated Reza Sharifi who works at one exchange Tensions with US squeeze the rial Iran s market has been severely affected by international sanctions particularly after U S President Donald Trump unilaterally withdrew America from Tehran s nuclear deal with world powers in At the time of the deal which saw Iran drastically limit its enrichment and stockpiling of uranium in exchange for lifting of international sanctions the rial traded at to the dollar After Trump returned to the White House for his second term in January he restarted his so-called maximum pressure campaign targeting Tehran with sanctions He again went after firms trading Iranian crude oil including those selling at a discount in China Trump meanwhile has written to Iran s Supreme Leader Ayatollah Ali Khamenei trying to jumpstart direct talks between Tehran and Washington So far Iran has maintained it is willing for indirect talks but such discussions under the Biden administration failed to make headway Meanwhile Trump is continuing an intense airstrike campaign targeting the Iranian-backed Houthi rebels in Yemen the last force in Tehran s self-described Axis of Resistance able to attack Israel after other militant groups were mauled by Israel during its war on Hamas in the Gaza Strip Mehdi Darabi a domain analyst noted he thought that foreign pressures in fresh months caused expectations for the possibility of a decrease in oil sales and more inflation and it caused a higher rate for hard currencies according to Tehran s Donay-e-Eqtesad economic newspaper A pensioner who gave only his first name Saeed for fear of reprisals commented if Iran stopped its hostile procedures toward the outside financial relief could be practicable If we want to live a content life we should maintain good ties with our neighbors he commented We shouldn t bare our teeth at them They will do the same Economic pressure inflames Iranian masses and politics Economic upheavals have evaporated the residents s savings pushing average Iranians into holding onto hard currencies gold cars and other tangible wealth Others pursue cryptocurrencies or fall into get-rich-quick schemes Meanwhile internal political pressure remains inflamed still over the mandatory hijab or headscarf with women still ignoring the law on the streets of Tehran Rumors also persist over the executive potentially increasing the cost of subsidized gasoline in the country which has sparked nationwide protests in the past Iran s theocracy has responded by dialing broadly back hijab enforcement and easing restrictions on at least one political figure On Saturday the state-run IRNA news agency even quoted a portions of a comment from Mehdi Karroubi a Shiite cleric parliament speaker and two-time presidential candidate who has been held in his home since the Arab Spring protests Karroubi who also was one of the leaders of Iran s Green Movement protests is in the process of being circulated from house arrest The end of my house arrest has coincided with a super-crisis that has put the country at the verge of devastating war his report reported The falling rial has put more pressure as well on Iranian reformist President Masoud Pezeshkian In March when the rate was rials to the dollar Iran s parliament impeached his finance minister Abdolnasser Hemmati over the crashing rial and accusations of mismanagement Anger over administration spending also saw Pezeshkian fire his vice president in charge of parliamentary affairs Shahram Dabiri for taking a luxury cruise to Antarctica state media broadcasted Though Dabiri reportedly used his own money for the trip with his wife the Instagram photos posted of his trip angered an Iranian residents scrapping by to survive In a situation where the economic pressures on people are huge and the number of deprived people is massive expensive recreational trip by personnel even by their own personal fund is not defendable and reasonable Pezeshkian noted in firing Dabiri who so far hasn t offered any masses explanation for his trip Related Articles Iran celebrates ancient fire festival ahead of Persian New Year as tensions with US loom DePetris Is Trump literally interested in talking with Iran US and Iran-backed Houthis both vow escalation after US airstrikes target rebels in Yemen Trump orders strikes on Iran-backed Houthi rebels in Yemen and issues new warning Iran says it is open to talks about concerns about militarization of its nuclear scheme Pezeshkian separately announced Saturday that Iran required a dialogue from an equal position with the U S If you want negotiations what is the point of threatening Pezeshkian requested according to IRNA America nowadays is not only humiliating Iran but the world and this behavior contradicts the call for negotiations Gambrell broadcasted from Dubai United Arab Emirates