Iranian Rial Plummets to Record Low Amid US Blockade
The Iranian rial has hit a record low, reaching over 2.5 million rials per US dollar among currency traders in Tehran.
This marks a decline of about 170% from August 2023 when the exchange rate was approximately 920,000 rials per dollar and is down from 1.5 million rials at the beginning of this year.
The depreciation of the Iranian currency can be attributed to the decline in oil revenues due to the US maritime blockade. According to Homayoun Falakshahi, head of crude oil analysis at Kpler, Iran did not load any oil for export last month for the first time since the 1979 Islamic Revolution.
The country is still receiving limited revenue from oil that was already in tankers at sea before the US reimposed the blockade in mid-July. However, these stocks are expected to be depleted by mid-October and payments for latest deliveries may continue until December.