Iranian currency pays price for nuclear impasse

Iran’s currency suffered another steep drop after the nuclear talks in Almaty failed to achieve any palpable results.

Reports from Iran indicate that the dollar was traded on Sunday March 7 for 1,500 rials more than on the previous day. Similarly, the price of gold rose by four percent.

Some analysts had attributed the recent rise in the exchange rate to the high demand for foreign currencies during the New Year holidays, but the Baztab-e Emrooz website rejects that analysis and emphasizes that the latest decline in the national currency came as soon as the world powers’ negative assessment of the Almaty talks was announced in the news.

Those talks came to an end yesterday after two days of negotiations, with Catherine Ashton, the head of the G5+1 delegation, saying that there is still a wide gulf between the two positions.

Previously, the national currency had gained some value against the dollar and other foreign currencies after positive outlooks were expressed following the first meeting in Almaty in February.

Iran’s national currency has tumbled considerably after the tightening of international sanctions against the country, going from just over 13,000 rials to the dollar to close to 40,000 rials.

While some officials still express hope of getting the national currency back to where it was, in March, Iran’s industry, mining and trade minister said the economy must come to terms with the dollar at 40,000 rials, as it will no longer fall to levels below 20,000 rials.

By Radio Zamaneh


The Iran Project is not responsible for the content of quoted articles.