Iran rial plunges to new low

The dollar was being offered for as much as 75,000 rials, compared to around 65,000 just before Trump announced his decision on Tuesday night.

dubai - The dollar is being offered for as much as 75,000 rials

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Published: Wed 9 May 2018, 3:51 PM

Last updated: Wed 9 May 2018, 6:06 PM

The Iranian rial plunged to a record low against the US dollar in the free market on Wednesday after US President Donald Trump decided to withdraw from a deal on Tehran's nuclear programme, fuelling fears of an economic crisis in Iran.

The dollar was being offered for as much as 75,000 rials, compared to around 65,000 just before Trump announced his decision on Tuesday night, according to foreign exchange website Bonbast.com, which tracks the free market.

Dealers in Tehran quoted similar levels on Wednesday, according to an Iranian economist outside the country who is in touch with them. One dealer said the rial had hit 78,000, while another said he had made 2 sales of dollars at 80,000.

The currency has been sliding for months because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who feared a pullout by Washington from the nuclear deal, and renewed US sanctions against Tehran, could shrink the country's exports of oil and other goods.

The rial has tumbled from around 57,500 at the end of last month and 42,890 at the end of last year - a freefall that threatens to boost inflation, hurt living standards and reduce the ability of Iranians to travel abroad.

Iranian authorities announced last month they were unifying official and free-market exchange rates at a single level of 42,000, and banning any trade at other rates. - Reuters

Published: Wed 9 May 2018, 3:51 PM

Last updated: Wed 9 May 2018, 6:06 PM

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