The Iranian rial has reached an unprecedented low against the US dollar reaching 5,000 rials per dollar due to unrest in the country and threats made against its economy by America.
According to the BBC, “all things started with Donald Trump taking over the US presidency, and with every word from the new US president, the Iranian currency would be shaken. But the real decline occurred after the first public threat from Trump in September, last year in which he said the nuclear deal with Tehran could be cancelled.”
“The economic rule says; the higher the demand, the higher the price. However the Iranian rule says: The more Trump speaks, the more the Iranian currency is affected negatively,” the report added.
In October, the Iranian currency broke the 4,000 rial barrier against the dollar on the black market, while the central bank’s exchange rate reached more than 3,400 rials per dollar.
Iranian state television reported yesterday that the central bank will raise deposit rates to bolster the value of the Iranian rial after it dropped to the record low.