Iran’s rial plunged another 9 % to a new record low

Iran’s rial plunged at least 9 percent to a record low against the U.S. dollar on Tuesday as the industry minister said he hoped security services would root out speculators whom he blamed for the drop.

The rial was trading at about 37,500 to the dollar, down from around 34,200 at the close of business on Monday, a foreign exchange trader in Tehran told Reuters. Other Tehran traders said the rial had dropped even further, to 38,000 or 40,000.

The currency has lost about a third of its value since Monday last week, when the government launched an “exchange centre” that was designed to stabilise the rial by supplying dollars to importers, but appears to have backfired.

1000 Rial banknote. In 1979, prior to the takeover of Iran by the Islamist regime of Ayatollah Khomeini, this banknote was worth just over $14 but today it is worth about 2.67 cents or 525 times less.

Iran’s economy has been hit hard this year by Western economic sanctions against its disputed nuclear programme. The sanctions have slashed its oil exports and mostly excluded it from the global banking system.

Iranians have responded by scrambling to change their rial savings into hard currency, fuelling the slide.

“We have greater expectations that the security services will control the branches and sources of disruption in the exchange market,” said Iran’s minister of industry, mines and trade Mehdi Ghazanfari, according to the Fars news agency.

“Brokers in the market are also pursuing the increase in price because for them it will be profitable, and there is nobody to control them.”

Reuters

  • 5thDrawer

    Another ‘New’ new.
    Iran … World-Leading Record Setter … Proud of it’s Heritage.  🙂
    Hands on the hearts, please … AK47’s raised.

    • breakthemould

       5th Drawaer, I am on my way to Tehran to purchase a nice Asfahan for my lounge.

      • 5thDrawer

        See if you can find a nice Persian rug … my Jin is having trouble keeping the old one flying …

        • breakthemould

           Some say you have to go to Afghanistan to get decent Persian Rugs, as it is the route for them now. Do you have a  phone no for one or two Mujahideen? we can start from there. May be it is easier to look in some of the show rooms in London? Hay? what do you think? stay safe saving myself from being on TV with a sward over my head?????

        • breakthemould

           Some say you have to go to Afghanistan to get decent Persian Rugs, as it is the route for them now. Do you have a  phone no for one or two Mujahideen? we can start from there. May be it is easier to look in some of the show rooms in London? Hay? what do you think? stay safe saving myself from being on TV with a sward over my head?????

        • 5thDrawer

          Good to avoid the swords, Mr mould. 🙂  It’s why I send my Jin …

  • 5thDrawer

    Another ‘New’ new.
    Iran … World-Leading Record Setter … Proud of it’s Heritage.  🙂

    • breakthemould

       5th Drawaer, I am on my way to Tehran to purchase a nice Asfahan for my lounge.

      • 5thDrawer

        See if you can find a nice Persian rug … my Jin is having trouble keeping the old one flying …

        • breakthemould

           Some say you have to go to Afghanistan to get decent Persian Rugs, as it is the route for them now. Do you have a  phone no for one or two Mujahideen? we can start from there. May be it is easier to look in some of the show rooms in London? Hay? what do you think? stay safe saving myself from being on TV with a sward over my head?????

        • 5thDrawer

          Good to avoid the swords, Mr mould. 🙂  It’s why I send my Jin …

  • Patience2

    You know, 9% of next-to-nothing is STILL next-to-nothing.  I mean, gee whiz, these guys could’ve had a burgeoning economy like, say, even North Korea, if they’d only tried!

  • Patience2

    You know, 9% of next-to-nothing is STILL next-to-nothing.  I mean, gee whiz, these guys could’ve had a burgeoning economy like, say, even North Korea, if they’d only tried!