By The Jerusalem Post (World News) | Created at 2024-12-22 13:25:07 | Updated at 2024-12-22 18:32:08
5 hours ago
The rial’s stronger value in 2015 during Iran’s nuclear deal, when it traded at 32,000 to the dollar, contrasts sharply with today’s conditions.
By THE MEDIA LINE STAFF DECEMBER 22, 2024 15:16
Bullets and Iranian Rial bills are seen placed over the flag of the Islamic Republic of Iran (illustrative)
(photo credit: INGIMAGE)
The Iranian rial fell to an all-time low on Wednesday, trading at 777,000 rials to the US dollar, a sharp decline from 703,000 in November after Donald Trump's victory in the US presidential election.
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Central Bank Governor Mohammad Reza Farzin announced measures to stabilize the currency, including injecting $220 million into the market.
Similar interventions have been used in the past with limited success. Despite Iran’s vast oil and gas reserves, years of underinvestment, sanctions, and infrastructure mismanagement have left the economy ill-prepared for crises, contributing to rolling blackouts, gas shortages, and the current energy crisis, exacerbated by harsh winter weather.
The rial’s stronger value in 2015 during Iran’s nuclear deal, when it traded at 32,000 to the dollar, contrasts sharply with today’s conditions. The 2018 US withdrawal from the accord under Trump reignited sanctions and economic instability.
Pezeshkian's strategy
President Masoud Pezeshkian, who assumed office after the death of Ebrahim Raisi, has sought to negotiate a deal that would include lifting Western sanctions.
However, Iran’s own policies—its advancing nuclear program, enriching uranium near weapons-grade levels, and ongoing involvement in regional conflicts, directly and via proxy forces such as Hamas, Hezbollah, and the Houthis—are significant roadblocks.
These actions have drained the country's resources, isolated it diplomatically, and prevented the progress needed to achieve eased sanctions.
