Iran's Rial Hits Record Low Amid US Sanctions Threat
Iran's rial currency has hit a record low as the US prepares to announce new sanctions. The rial dropped to 2.02 million to the U.S. dollar on Monday, August 24, as trading opened on currency markets.
The market rate is significantly higher than Iran's official Central Bank rate of around 1.5 million rials per dollar. This means that most Iranians are paying a much higher price for foreign currency due to the current economic pressures.
The US and Israel attacked Iran on February 28, which has led to double-digit inflation and negative growth in the country's economy. The International Monetary Fund forecasts that GDP will contract more than 5% as a result of these sanctions.
Pakistan sent a high-level delegation to Iran on Monday to discuss ending the war. However, Iranian Foreign Ministry spokesperson Esmail Baghaei said 'any escalation of this situation will undoubtedly bring about consequences.' He also stated that 'our hands are not tied.'