Iranian rial sees first decline since 1979 over retaliation fears
Date
11/4/2024 4:59:49 AM
(MENAFN) The Iranian currency, the rial, experienced a significant collapse against foreign currencies, particularly the US dollar, marking its first such decline since 1979. This alarming development was reported by Iranian media on Sunday, highlighting the ongoing economic struggles facing the country. The situation reflects broader challenges within Iran's economy, which has been under pressure from various internal and external factors.
According to the Iranian website "Tijara News," morning transactions on Sunday in Tehran's open market revealed that the price of the US dollar exceeded 700,000 rials. This sharp increase indicates a severe depreciation of the rial, which has dramatically affected the purchasing power of Iranian citizens. The report noted that the selling price of the dollar reached 702,000 rials, a stark contrast to approximately two weeks prior when it was trading around 640,000 rials.
In addition to the dollar, other foreign currencies also saw substantial increases in value during Sunday trading. The euro was traded at more than 760,000 Iranian rials, while the British pound reached around 900,000 rials. These figures highlight the extent of the rial's decline and underscore the economic challenges that Iranians are currently facing in their daily transactions.
The website attributed this rise in exchange rates to regional tensions, particularly concerns regarding Iran's potential response to a recent attack by Israel. Such geopolitical uncertainties are likely contributing to a lack of confidence in the rial, prompting traders and citizens alike to seek refuge in foreign currencies as a more stable store of value amid the unfolding crisis.
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