The Iranian currency, the rial, hit historic lows against the U.S. dollar today as the United States reimposed severe sanctions on the Iranian economy. The Trump administration, in a bid to change the regime’s behavior, looks to be pushing Iranian oil production towards zero.
The rial has lost around 15 percent of its value on the open market in the past three days, trading at 128,500 to $1 by late September 3, according to Bonbast.com, which tracks Iran’s rates, reported RFERL.
The new drop comes after Central Bank Governor Abdolnaser Hemmati on September 1 announced tighter restrictions on allocating foreign exchange reserves, according to financial journalist Maziar Motamedi.
“Hemmati said that he wishes to be much more careful in allocating foreign currencies at government rates, signaling a potential forthcoming shortage of hard currency,” Motamedi told the AFP news agency.
Severe civil unrest has rocked Tehran and other Iranian cities as an economic crisis grips the country. When coupled with water shortages, and pervasive corruption, it seems the Iranian people have had enough. The deepening devaluation of the rial may bring regime change to Iran sooner than later.