Iranian currency drops 10% as hopes of nuclear deal fade

The US dollar has risen more than 10% since August 19 against the Iranian rial as optimism over a nuclear deal with the US has turned into pessimism.

The dollar was trading above 310,000 rials on Tuesday, down from just over 280,000 in mid-August when observers and diplomats saw a real chance of a deal after 16 months of talks to limit the program Iranian nuclear in exchange for the lifting of the main American sanctions.

In recent weeks, Iran has hardened its stance, with US and European officials now saying a quick deal is unlikely.

The rial’s decline accelerated last week as diplomats expressed more pessimistic views about the prospects for a deal.

Iran’s currency has lost value more than nine times since early 2018, when former US President Donald Trump withdrew from the 2015 nuclear deal, the JCPOA, and imposed crippling sanctions on Iran. oil export and banks against Iran. In 2017, the rial traded between 33,000 and 34,000 per US dollar.

The currency has been extremely sensitive to developments surrounding the nuclear conflict, with positive news bolstering hopes of lifting sanctions and negative news leading to economic uncertainty.

With the practical devaluation of the rial, annual inflation soared to almost 50% and tens of millions of Iranian workers sank into relative poverty. Food prices have increased by at least 100% over the past year.

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