Iran's Currency Continues To Fall After Disappointing Nuclear Talks

The decline in the value of Iran’s currency continued Sunday, after disappointing nuclear talks with world powers in Vienna added to economic uncertainty.

The free market value of the US dollar in Tehran shot up to 300,500 rials Sunday, a historic low for the battered currency. On Saturday the dollar had reached to just over 300,000 rials.

Despite government efforts to claim that the nuclear negotiations are not dead and could continue in a few days, the public remained unconvinced, buying more dollars.

The government feeling market demand restricted access to dollars at official exchange outlets earlier in the week, but the move led to demand shifting to unofficial dealers.

The current exchange rate shows the rial has fallen 4,500-fold since the Islamic Republic was set up in 1979. During the monarchy one US dollar was equal to just 70 rials.

The Iranian currency has fallen more than ninefold since early 2018, when it became apparent that then-president Donald Trump was inclined to leave the JCPOA and impose sanctions on Iran. He did so in May of that year and the rial has kept falling ever since.