Iran Currency Falls to Lowest Ever Value Against US Dollar

The Iranian Rial plunged to its lowest value ever this monthת as talks to resuscitate the country’s broken nuclear deal with world powers remained at an impasse.

Traders in Tehran exchanged the rial at 332,000 to the US dollar, up from the start of June, when it traded at 318,000 to the greenback.

Iran’s currency was trading at 32,000 rials to the dollar in 2015 when the US pulled out of the nuclear deal and imposed sanctions on Iran’s oil and banking sectors. 

Talks in Vienna to renew the agreement have been deadlocked for months. Responding to US sanctions, Iran abandoned some of its own commitments to the deal and has since upped its nuclear activities, including enriching uranium beyond the limits of the old agreement.

What does this mean for me? 

Iran’s economy is teetering under sanctions. In central Tehran, shop owners have been taking to the streets in protest over the worsening economic situation, after many closed their businesses following a recent spike in business tax rates.

Currency trading is rife on the black market, with police arresting dozens of currency and gold traders for creating false demand. 

As a FOREX trader, you should know that Iran is one of many distressed economies around the world whose currencies are in freefall. It will serve you to be aware of their economic situation before investing heavily in their currencies.