Tehran (HRNW)- Iran is facing a severe economic crisis and its currency has fallen to a shocking level. Due to global economic sanctions, Iran has fallen into a severe economic crisis and its currency has fallen to such an extent that 1.4 million rials are equivalent to just one US dollar.
Economists say that the Iranian currency’s fall to its lowest level means that the value of the Iranian rial has almost disappeared. This significant decline in the rial has occurred amid sanctions and regional tensions, which has led to a huge increase in inflation in Iran.
On the other hand, after a significant decline in the value of the Iranian rial, the head of Iran’s Central Bank, Mohammad Reza Farzin, resigned on December 29, while demonstrations are taking place in Tehran and several other cities.
On the other hand, in the current situation, Iranian President Masoud Peshkeshkian has instructed the protesters to adopt a soft approach and has instructed the Minister of Interior to talk to the representatives of the protesters so that the problems can be resolved quickly.
The sanctions imposed by the United States have severely affected Iran’s largest source of revenue, oil exports, as Iran is unable to sell oil and is unable to earn foreign exchange.
This situation reflects the deep distrust of global investors and Iranian citizens in their national currency, the rial, and the country’s economic stability. Iran has been completely cut off from the international banking system (such as SWIFT). This has almost completely cut off foreign trade and transactions.
According to reports in Iran’s official media, the government is planning to increase taxes in the Iranian New Year, which begins on March 21, which has further increased concerns.
According to the Statistics Center, food prices have increased by 72 percent since December last year, and health and medical prices by 50 percent. While the possibility of further increase in inflation is also being expressed.
It should be noted that at the time of the 2015 nuclear deal, Iran’s currency was trading at 32,000 rials to the dollar.
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