Sanctions And Isolation Causes Iranian Currency To Take A Huge Fall

Sanctions And Isolation Causes Iranian Currency To Take A Huge Fall

January 22, 2023 0 By Wiley McDermott

The Iranian currency has been taking huge falls against all major currencies for a while. However, the recent trading sessions have been the worst for the troubled currency of Iran.

The Saturday trading session was nothing less than a disaster for the Iranian currency when it hit a really low level against the dollar.

The data shows that the Iranian rial has fallen to record low levels against the trading price of the dollar in the Saturday session.

Sanctions and Isolations are Causing Anarchy

The Iranian currency has been facing total anarchy in the wake of the sanctions and the isolation it has been facing for a while.

It seems that things have now started to take the worst turn for the Iranian currency. It was in 2015 when the US started to impose very strict sanctions on Iran.

It all started when it was claimed that Iran was illegally working on the production of uranium, the element responsible for the creation of nuclear bombs.

Since 2015, the US and all of its allies at the UN have continued imposing stricter sanctions on Iran. They want to force Iran out of running experiments and mass-producing weapons of mass destruction.

Feeling threatened, the US and its allies have continued imposing strict sanctions trying to disconnect Iran entirely from the rest of the world.

Whether it is imports/exports, expansion of business, or bringing in investments, Iran is barred by the US sanctions to do any of that.

Therefore, the country is now isolated and it has no strong allies to support it throughout these difficult times. This is the reason why Iran is currently facing major isolation, which is not helping its economy at all.

Political Instability

Several protests are taking place in Iran pertaining to human and women’s rights. Many claims that the United States and its allies are lobbying for these protests to destabilize the political infrastructure in the country.

The European Union has made things worse as it has started to issue sanctions against the Revolutionary Guards of Tehran. This is causing more problems for Iran and they are pushing it away from global diplomacy.

Nuclear Talks are being stalled

For a long time, Tehran and the European Union have shown interest in having talked so they can discuss the nuclear matter and get over with it.

However, the EU demands that Iran must completely get rid of the Nuclear research material and abandon their operations.

On the other hand, Tehran (Iran) is not willing to do it, and it wants to carry on with nuclear experiments.

This is the reason why the talks are being stalled from both sides and neither of the sides is able to come to a conclusion or a common ground.

For a while, Iran has been detaining several nationals from the European region.

On top of that, Iran has deployed the Revolutionary Guards to deal with the protestors in the country, which has led to several civilian executions.

This has given the European Union an opportunity to use it to its own benefit and exert more pressure on Tehran.

The EU is now getting ready to launch a fourth wave of sanctions on Iran to make sure that more pressure is exerted on the country.

The diplomatic sources have claimed that the EU will be adding the Revolutionary Guards to the sanctions list. They want to stamp them as a terrorist group, treating the citizens with brutality.

Performance of the Iranian Rial vs the Dollar

The value of the Iranian rial has plunged tremendously against the US dollar. On Saturday, the value of the rial had dropped to 44,700 rials against a single dollar, according to an unofficial market.

Just a day earlier, the reported trading price of the Iranian rial versus the dollar was 43,050 rials. Since September 16, 2022, the value of the Iranian rial has dropped by 29% against the dollar.