Status: 12/11/2022 3:26 p.m
Since the start of mass protests in Iran and the associated sanctions, the country’s currency has fallen to a record low. The rial has fallen more than 20 percent against the euro and dollar since September.
Iran’s currency has fallen to a record low after nearly ten weeks of protests in the country. The euro exchange rate reached almost 400,000 rials, the dollar exchange rate rose to more than 370,000 rials. That’s a more than 20 percent increase since the protests began in September, according to forex brokers. Traders fear the rial will depreciate even more in the coming weeks.
Even before the protests, Iran was in an acute financial crisis because of the nuclear dispute with the West. However, there were hopes that the economy could recover with an agreement in the nuclear negotiations.
Iran must reckon with further isolation
In that case, Iran would have been able to resume oil exports – the country’s main source of income – and regain access to its frozen accounts abroad. But after the uprisings of the past two and a half months and the brutal suppression of the protests, an agreement is a long way off.
The USA and several European countries – including Germany – strongly condemned the human rights violations and imposed new sanctions. According to observers, Iran must reckon with further political and economic isolation, particularly with the recent execution of a demonstrator and other planned executions.