Iran’s Currency Falls By 10% In One Month Amid Strikes
Iran’s rial hit its lowest point in one month on Monday, falling by 10 percent against the US dollar, as sanctions remain in place and the economy is in crisis.
The rial hit a low of 550,000 against the US dollar for the first time since April 1, when an apparent intervention by the Central Bank of Iran (CBI) had brought the rate down to around 500,000 rial for each dollar.
In early 2018, the rial was trading at around 40,000 when former US President Donald Trump decided to pull out of the JCPOA nuclear agreement and impose crippling sanctions on Iran. Since then, the rial has fallen by almost 14-fold.
A series of worker strikes have been underway since April 22, affecting energy, petrochemical, steel and other sectors, as the rial falls and inflation spikes.
Monthly salaries for ordinary workers that were equivalent to $220 one year ago are now around $120 in purchasing power.
An Iranian official said Sunday that workers’ pay covers expenses for just nine days of the month for a small family.
Negotiations in 2021 and 2022 to reach a new nuclear agreement reached a deadline last September, prompting markets to sell off rials. Since then, the currency has lost half its value.
In addition to the nuclear issue, Iran’s supply of weapons to Russia and its brutal and deadly crackdown on anti-government protesters in recent months have made further talks more difficult as the United States demands Iranian policy changes at multiple levels.
