The Iranian rial dropped to unprecedented lows on Tuesday, signaling potential concerns about the economic policies of the country’s repressive government and the aftermath of the recent loss of its long-time ally, Bashar al-Assad, in Syria.
The rial hit 730,000 per United States dollar on Tehran’s exchange market, down from 720,000 last week, while the euro rose to almost 770,000 during the day’s trading. This shift follows at least four instances of record-low valuations since September, reflecting the vulnerable banknote’s continued decline.
With U.S. President Donald Trump’s inauguration next month, further depreciation of the rial is expected, as the former chief executive has pledged to intensify financial sanctions against the Islamic Republic beyond the measures currently in place. This is particularly likely if Trump targets the theocracy’s oil exports, a crucial source of foreign currency for Iran’s economy.
The significant slide contrasts sharply with the conversion rate of 32,000 to the dollar when the regime entered the 2015 nuclear agreement with Western powers and the 70 rial a dollar could purchase before the 1979 Iranian Revolution.
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