Iran’s rial plunges past 1 million per dollar in record drop
Iran’s currency hit a record low of 1,039,000 rials to the US dollar on Tuesday, as the absence of nuclear talks with the US continues to fuel economic uncertainty.
Iran’s currency hit a record low of 1,039,000 rials to the US dollar on Tuesday, as the absence of nuclear talks with the US continues to fuel economic uncertainty.
The rial has halved in value since President Masoud Pezeshkian took office in August, deepening concerns over Iran’s worsening economic outlook, amid continuing US economic sanctions and negative regional developments for Iran.
The steep decline began after Israel launched devastating attacks on Iran’s proxy, Hezbollah, in Lebanon in September, undermining Tehran’s regional influence. The election of Donald Trump, who takes a harder line on the Islamic Republic, has added to the uncertainty.
Last week, the currency dropped to one million per US dollar in Tehran, a day after Trump warned Iran of retaliation if its Houthi allies in Yemen retaliated against US airstrikes designed to weaken them.
The rial, which was valued at around 40,000 per dollar in early 2018, began to plummet after Trump withdrew from the JCPOA nuclear deal in May of that year and imposed tough economic sanctions, pushing inflation above 40%.
Prices for food and other essential goods have recently surged, with inflation in these categories estimated at 100%. As the rial continues to lose value, even higher inflation is expected in the coming months.
Foreign Minister Abbas Araghchi “informed Mr. Fuad Hussein of the contents of a letter from US President Donald Trump addressed to the Iranian leadership, represented by the Supreme Leader Seyyed Ali Khamenei,” Iraq's foreign ministry said in a statement.
“He confirmed that the Iranian government will respond to the letter.”
Last week, an Emirati official brought a letter from Trump proposing nuclear talks with Tehran, which Supreme Leader Ali Khamenei rejected, saying such a proposal was deception from Washington amid crippling sanctions on Iran.
According to Iraq's foreign ministry, Hussein appreciated being briefed on the contents of President Trump’s letter and said he hoped that the exchange of messages would help open channels for dialogue between the two sides.
The two diplomats also discussed bilateral ties and agreed to continue communication, particularly during the sensitive phase ahead, the ministry added.
According to Axios, Trump’s letter to Khamenei included a two-month deadline for reaching a new nuclear agreement and warned of consequences if Iran expanded its nuclear program.
Iran's foreign ministry also released a readout of the call but made no mention of Trump’s letter. Instead, it focused on the escalation in Gaza and Lebanon following what it called brutal attacks by Israel, and the US military offensive in Yemen.
In part of the readout, the Iranian foreign ministry said Araghchi addressed US sanctions on Iran’s oil industry, saying the American claims and accusations aimed at pressuring Tehran were baseless.
The readout did not make any mention of Iraqi Oil Minister Hayan Abdel-Ghani who on Monday said Iranian oil tankers stopped by US forces in the Persian Gulf were using forged Iraqi documents, as Washington ramps up sanctions on Iran's oil exports as part of US President Donald Trump renewed "maximum pressure" campaign.
