Iranian Currency Hits Record Low Amid Ongoing Economic Struggles

Iran's currency has hit a new record low after experiencing an 9.4% drop in value over just two weeks. The US dollar is now trading at 204,000 tomans on the open market, equivalent to approximately 2.04 million rials per dollar. This decline comes as Iran faces multiple economic challenges, including high inflation and weaker oil sales.

The Statistical Center of Iran reported an annual inflation rate of 66% in July, with prices rising 87.9% compared to the same period last year. Food inflation was particularly severe, reaching 128%. The depreciation of the Iranian currency is also linked to the impact of US sanctions, which have targeted nearly 60 individuals and entities.

The 'Operation Economic Outcast' launched by US Treasury Secretary Scott Bessent in August has widened potential secondary sanctions across sectors including digital assets, technology, gold, aviation, and shipping. The Iranian economy is struggling to cope with these restrictions, as well as reduced oil sales. Shipments to China, Tehran's largest crude customer, fell from 823,000 barrels per day in July to about 534,000 bpd in August.