Tehran, Dec 19 (V7N)— The Iranian rial has plummeted to its lowest value in history, trading at 777,000 rials against the US dollar, according to reports by the Associated Press. The record low comes amid ongoing economic struggles exacerbated by sanctions and a lack of investment in the energy sector.
This marks a significant depreciation since the rial was valued at 733,000 against the dollar on the day Donald Trump won the US presidential election in November 2024. For context, the rial stood at 32,000 to the dollar in 2015 when Iran signed its nuclear agreement with world powers.
Central Bank Governor Mohammad Reza Farzin addressed the crisis in a televised interview, pledging to stabilise the currency market. He announced that $220 million had been injected into the market, with plans to increase the supply of foreign currency further.
Iran, despite possessing vast oil and gas reserves, struggles to meet domestic energy demands during peak seasons. Years of underinvestment in the energy sector, compounded by stringent Western sanctions, have led to recurring electricity and gas shortages.
When reformist President Masoud Pezeshkian assumed office in July 2024, the rial traded at 584,000 per dollar, highlighting the steep decline over recent months.
The currency’s depreciation reflects the broader economic challenges facing Iran, with rising inflation and reduced purchasing power putting additional pressure on its citizens.
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