Amid growing economic pressures, Iran's rial slips to new low

DUBAI, U.A.E.: Iran's currency, the rial, plunged to new historic lows on December 14, reflecting growing economic pressures and escalating geopolitical tensions.

The unofficial exchange rate saw the rial trading at 756,000 to the U.S. dollar, a sharp drop from 741,500 rials just a day earlier, according to Bonbast.com, which monitors currency exchange rates. Bazar360.com reported similar figures, with the dollar selling for about 755,000 rials.

This steep depreciation highlights growing uncertainties over potential U.S. policy shifts under Donald Trump's imminent presidency and Iran's nuclear program. The dollar has steadily climbed against the rial since November, fueled by speculation that Trump may reintroduce his "maximum pressure" sanctions strategy and possibly embolden Israeli military action against Iranian nuclear facilities.

"Iranians are turning to dollars, gold, and cryptocurrencies as a hedge against inflation," analysts note, citing the country's soaring official inflation rate of approximately 35 percent. The rush for safe-haven assets signals deeper challenges for the already embattled rial.

Adding to the currency's woes, the UN nuclear watchdog's board of governors recently passed a resolution critical of Tehran's nuclear activities, raising the possibility of additional international sanctions. Simultaneously, the collapse of Syrian President Bashar al-Assad, a long-time ally of Iran, has further compounded regional instability.

The rial's value has been in freefall since the U.S. withdrew from the 2015 nuclear agreement in 2018. "The deal had restricted Iran's uranium enrichment activities, but Trump's decision to reinstate economic sanctions reversed much of that progress," economic experts explain.

Since then, Iran's currency has lost more than 90 percent of its value, underscoring the dire consequences of sustained economic and political isolation.