Iran’s currency, the rial, fell to its lowest level since October 2020, crossing the 280,000 rial mark against the US dollar on Tuesday, as hopes of a breakthrough in nuclear talks with world powers sank. faded.
Foreign exchange websites said the reason for the 1.4% one-day drop was a negative comment from the UN’s International Atomic Energy Agency yesterday, which said Iran did had not fully honored the agreement reached on September 12.
Iran’s battered currency, which has grown nine-fold since 2017, is sensitive to news about Iran’s dispute over its nuclear program with the United States and its European allies.
The rial began to dip in late 2017 when former US President Donald Trump signaled his intention to withdraw from the 2015 nuclear deal, the JCPOA. After the official withdrawal in May 2018, the United States imposed heavy economic sanctions, gradually banning exports of Iranian crude oil.
With Joe Biden assuming the presidency, a series of talks began in Vienna to re-establish the JCPOA, but Tehran suspended negotiations without a specific date for his return.
The Iranian currency has declined steadily since the creation of the Islamic Republic in 1979, dropping from 70 rials in the last years of the monarchy to 280,000 rials to the dollar today.