LAHORE MIRROR (Monitoring Desk)– Iran’s currency has plummeted to another record low, dropping past 100,000 rials to the US dollar as Iranians brace for August 7 when the United States (US) is expected to reimpose the first batch of sanctions on their economy.
In May 2018, Washington pulled out of a landmark 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.
The US government decided to reimpose sanctions on Iran upon its withdrawal, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.
On Sunday, the Iranian rial plunged to 111,500 against one US dollar on the unofficial market, down from about 97,500 rials on Saturday, according to foreign exchange website Bonbast.com.
Other websites said the dollar was exchanged between 108,500 and 116,000 rials.
The rial has lost about half of its value since April because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the effects of sanctions.
Iran’s government tried to fix the rate at 42,000 in April, and threaten to crack down on black market traders. But the trade continued amid public worries about a prolonged economic downturn.