The Iranian rial has plunged to a record low, dropping to 111,500 points against the US dollar on the unofficial market as Iranians brace for 7 August when the US is due to re-impose sanctions on their economy.

The US pulled out of a 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.

Upon its withdrawal in May, US decided to re-impose sanctions on Iran, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from November or face US financial measures, reported Reuters. </s> Tehran — Iran’s currency traded at a fresh record-low of 119,000 to the dollar on Tuesday, a loss of nearly two-thirds of its value since the start of the year as US sanctions loom.

The Iranian rial has been crashing in recent days as the country anxiously awaits the reimposition of full US sanctions, starting on August 6.

The rial hit 100,000 to the dollar for the first time on Sunday and continued its decline on Monday, losing 18% of its value in less than two days.

On January 1, the dollar was worth 42,900 rials.

The government has been in crisis mode, replacing its central bank chief last week.

The central bank issued a statement on Monday, blaming the currency volatility on the "enemies’ conspiracy" and vowing fresh counter-measures "in the coming days".

In April, the government tried to fix the value of the rial at 42,000, but black-market rates exploded as Iranians rushed to illegal traders, seeking to protect their savings by buying dollars, or investing in the hope that the rial would continue to fall.

With banks often refusing to sell their dollars at the artificially low rate, the government was forced to soften its line in June, allowing more flexibility for certain groups of importers.

Having announced in May that it was pulling out of the 2015 nuclear deal, the US is set to reimpose its full range of sanctions in two stages, on August 6 and November 4. </s> • The Iranian rial fell below 100,000 against the US dollar for the first time.
• US sanctions on Iran go into effect August 6.
• Follow the rial in real time here.

Iran’s currency, the rial, sank to an all-time low over the weekend, falling below 100,000 rials to the dollar, ahead of the first round of US sanctions which are set to go into effect next week.

The rial fell past 112,000 against the dollar on the black market Sunday, according to the Bonbast.com. Its value has more than halved since April.

Iran’s central bank blamed rising gold prices and faulted “enemies” for the sharp selloff.

“The recent developments in the foreign exchange and gold markets are largely due to a conspiracy by enemies with the aim of exacerbating economic problems and causing public anxiety,” the central bank said in a statement read on state television, according to Reuters.

Meanwhile, looming sanctions are weighing on the rial. As part of President Donald Trump’s decision in May to withdraw from the Iran deal, the US has vowed to reimpose tough economic penalties against Iran. The first round of sanctions, set to take effect August 6, include a ban on “significant” purchases of Iranian rials.

The US Treasury Department said it will also sanction US dollars, precious metals, and industrial goods next week, as well as halt Iran’s ability to export carpets and foods into the US and end certain license-related transactions.

Analysts see the first round of US sanctions as a pivotal moment for Iran and its economy, which has already been ailing amid political unrest, embargoes, and corruption scandals.

“Moreover, the window of opportunity for Europe to demonstrate that the nuclear deal is worth salvaging will likely close once the sanctions snap back,” RBC analysts led by Helima Croft wrote in a recent note.

Another round of US sanctions is set to take effect in November, perhaps most notably crippling Iran’s energy sector. The State Department last month called on all countries to stop importing Iranian oil by November or risk facing secondary sanctions.

The chart below shows the rial’s official exchange rate: </s> DUBAI — Iran's currency plunged to another record low on Sunday, dropping past 100,000 rials to the US dollar as Iranians brace for August 7 when the United States is due to reimpose a first lot of sanctions on their economy.

In May the United States pulled out of a 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.

Washington decided to reimpose sanctions on Iran upon its withdrawal, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.

On Sunday, the Iranian rial plunged to 111,500 against one US dollar on the unofficial market, down from about 97,500 rials on Saturday, according to foreign exchange website Bonbast.com. Other websites said the dollar was exchanged between 108,500 and 116,000 rials.

The rial has lost about half of its value since April because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the effects of sanctions.

US President Donald Trump has called the agreement one of the worst deals ever negotiated, but in a bid to salvage the accord, Iran's European partners in the nuclear deal are preparing a package of economic measures to offset the US pullout.

However, France said earlier this month that it was unlikely that European powers would be able to put together an economic package for Iran that would salvage its nuclear deal before November.

On August 7, the United States will reimpose sanctions on the purchase or acquisition of US dollars by the Iranian government, Iran's trade in gold and precious metals, and on the direct and indirect sale, supply and transfer to or from Iran of graphite, raw or semi-finished metals, coal and industrial-related software.

Sanctions also will be reapplied to the importation into the United States of carpets and foodstuffs made in Iran, and on certain related financial transactions.

Iran's oil exports could fall by as much as two-thirds by the end of the year because of the new US sanctions, putting oil markets under huge strain amid supply outages elsewhere in the world. </s> Iran's currency yesterday hit a record low of 100,000 rials to the dollar amid a deepening economic crisis and the imminent return of full U.S. sanctions. The unofficial rate stood at 102,000 rials by midday, according to Bonbast, one of the most reliable sites for tracking the Iranian currency.

The rate was confirmed by a trader who spoke on condition of anonymity to Agence France-Presse (AFP).

The rial has lost half its value against the dollar in just four months, having broken through the 50,000-mark for the first time in March.

The government attempted to fix the rate at 42,000 in April, and threatened to crackdown on black market traders.

But the trade continued with Iranians worried about a prolonged economic downturn turning to dollars as a safe way to store their savings, or as an investment in the hope the rial will continue to drop.

With banks often refusing to sell their dollars at the artificially low rate, the government was forced to soften its line in June, allowing more flexibility for certain groups of importers.

The handling of the crisis was one of the reasons behind last week's decision by President Hassan Rouhani to replace central bank chief, Valiollah Seif.

The currency collapse was encouraged by the U.S. announcement in May that it was pulling out of the 2015 nuclear deal, that lifted certain sanctions in exchange for curbs to Iran's atomic programmer.

The U.S. is set to reimpose its full range of sanctions in two stages on August 6 and November 4, forcing many foreign firms to cut off business with Iran. </s> IRAN'S currency plunged to another record low on Sunday, dropping past 100,000 rials to the US dollar as Iranians brace for Aug 7 when the United States is due to reimpose a first lot of sanctions on their economy.

In May the United States pulled out of a 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.

Washington decided to reimpose sanctions on Iran upon its withdrawal, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from Nov 4 or face US financial measures.

On Sunday, the Iranian rial plunged to 111,500 against one US dollar on the unofficial market, down from about 97,500 rials on Saturday, according to foreign exchange website Bonbast.com. Other websites said the dollar was exchanged between 108,500 and 116,000 rials.

The rial has lost about half of its value since April because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the effects of sanctions.

US President Donald Trump has called the agreement one of the worst deals ever negotiated but in a bid to salvage the accord, Iran's European partners in the nuclear deal are preparing a package of economic measures to offset the US.

However, France said earlier this month that it was unlikely European powers would be able to put together an economic package for Iran that would salvage its nuclear deal before November.

On Aug 7, the United States will reimpose sanctions on the purchase or acquisition of US dollars by the Iranian government, Iran's trade in gold and precious metals, and on the direct and indirect sale, supply and transfer to or from Iran of graphite, raw or semi-finished metals, coal and industrial-related software. REUTERS </s> Baku, Azerbaijan, June 25

Trend:

Tehran's Grand Bazaar traders brought down the shutters in protest at stagnation and unprecedented currency (rial) collapse.

According to Iran’s media reports the traders held “peaceful” protests on June 25 and chanted slogans in Tehran Bazaar.

The protestors called the government to take efficient measures against the growing economic turmoil.

A day before, merchants at the Aladdin and Charsou mobile phone shopping centers in central Tehran protested against the rapid depreciation of the rial by closing down their shops.

Amid the protests, the Iranian administration announced that will create a parallel market next week in a bid to combat the black market and facilitate the trade of foreign currencies in the country.

The decision came after the Iranian rial plunged to a record low against the US dollar on the unofficial market on June 24, continuing its slide amid fears of returning US sanctions after President Donald Trump in May withdrew from a deal on Tehran’s nuclear program.

The US dollar was being offered for as much as 87,000 rials, compared to around 75,500 on Thursday, the last trading day before Iran’s weekend, according to foreign exchange websites, which track the unofficial market.



The fall of the national currency has provoked a public outcry over the quick rise of prices of imported consumer goods.



In an effort to halt the slide, Iranian authorities announced in April they were unifying the dollar’s official and black market exchange rates at a single level of 42,000, and banning any trade at other rates under the threat of arrest.

Follow Trend on Telegram. Only most interesting and important news </s> TEHRAN: Iran's currency is continuing its downward spiral amid a deepening economic crisis and the imminent return of full US sanctions.The Iranian rial fell to 1,12,000 to the dollar on Sunday, from 98,000 to $1 on Saturday. The government-set exchange rate was 44,070 to the dollar, compared to 35,186 on January 1.The rial has lost half its value against the dollar in just four months, having broken through the 50,000-mark for the first time in March.The government attempted to fix the rate at 42,000 in April, and threatened to crackdown on black market traders.But the trade continued with Iranians worried about a prolonged economic downturn turning to dollars as a safe way to store their savings, or as an investment in the hope the rial will continue to drop.With banks often refusing to sell their dollars at the artificially low rate, the government was forced to soften its line in June, allowing more flexibility for certain groups of importers.The handling of the crisis was one of the reasons behind last week's decision by President Hassan Rouhani to replace central bank chief, Valiollah Seif.The currency collapse was encouraged by the US announcement in May that it was pulling out of the 2015 nuclear deal, that lifted certain sanctions in exchange for curbs to Iran's atomic programme.The US is set to reimpose its full range of sanctions in two stages on August 6 and November 4, forcing many foreign firms to cut off business with Iran. </s> Iran's currency has plunged to another record low, dropping past 100,000 rials to the US dollar, as Iranians brace for August 7 when the United States is due to reimpose the first batch of sanctions on their economy.

In May, Washington pulled out of a landmark 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.

The US government decided to reimpose sanctions on Iran upon its withdrawal, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.

On Sunday, the Iranian rial plunged to 111,500 against one US dollar on the unofficial market, down from about 97,500 rials on Saturday, according to foreign exchange website Bonbast.com.

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Other websites said the dollar was exchanged between 108,500 and 116,000 rials.

The rial has lost about half of its value since April because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the effects of sanctions.

Iran's government tried to fix the rate at 42,000 in April, and threaten to crack down on black market traders. But the trade continued amid public worries about a prolonged economic downturn.

Tehran was forced to soften its decision in June, allowing more flexibility for certain groups of importers, according to local reports.

On August 7, Washington is expected to reimpose sanctions on the purchase or acquisition of US dollars by the Iranian government, Iran's trade in gold and precious metals, and on the direct and indirect sale, supply and transfer to or from Iran of graphite, raw or semi-finished metals, coal and industrial-related software.

Sanctions will also be reapplied to the importation into the US of carpets and foodstuffs made in Iran, and on certain related financial transactions.

Iran, on the other hand, plans to offer price and tax incentives to private investors to take over idle state projects and help boost the economy.

The plan will offer attractive prices and flexible terms as well as tax holidays for investors who agree to take over some of the 76,000 government projects which are unfinished or idle, Vice-President Eshaq Jahangiri said on state television on Saturday.

"Over the past few months, the country's liquidity has gone into housing, foreign exchange and gold coins, raising prices and provoking public concerns," Jahangiri was quoted as saying by the website of the state broadcaster.

On November 4, 2018, a second set of sanctions is expected to start on industries such as shipping, oil, petrochemicals and the energy sector. The US will pursue efforts to reduce Iran's sale of crude oil.

Iran's oil exports could fall by as much as two-thirds, putting oil markets under huge strain amid supply shortages elsewhere in the world.
The Iranian rial hits another record low against the US dollar ahead of August 7, when the first round of fresh United States sanctions against Iran begin.