By Iran Probe Staff
Wednesday, 28 March 2018
A week after the Iranian New Year, the price of one US Dollar in the free market stands at 51100 Riyals, Iranian currency, which is a new record in the fall of the value of the Riyals.
Although the increase in the exchange rate in Iran began about 6 months ago, But in the past two months, when US Dollar reached the level of about 49,000 Riyals, the government tried to keep the exchange rate fixed in various ways, such as the arrest of brokers and unauthorized sellers, as well as raising interest rates on bank deposits.
Economic experts consider the reasons for the further fall of Riyals due to the likelihood of returning sanctions if the United States withdraws from Iran's nuclear deal. The nationwide protests and uprising during January and the rise in liquidity and the government's problems in importing oil money into the country are also effecting the fall of Iranian currency.
After Mike Pumpo's replacemnet with Rex Tilerson in the Stste Department and John Bolton’s replacement with McMaster as National Security Advisor, the possibility of US withdrawal from the JCPOA, has icreased.
In his New Year's message, Khamenei, the Supreme Leader, called the Iranian new year a year of supporting domestic production, which, according to some experts, indicates his disappointment in improving the economic situation and obtaining currency by the state for import of goods.
This means that the government should refrain from importing foreign goods to the country, which indicates that the government does not have sufficient foreign exchange reserves to import. As a result, it has resort to some kind of foreign exchange rationing.
As a result of the drop in the value of Riyals, in one hand causes political and economic instability, on the other hand, people have rushed to foreign currency to exchange their deposits into a credible foreign currency to maintain their capital, which this in turn has led to a more decline in the value of the Riyal.