Trump Reimposed Sanctions Against Iran While Rial lost 80% of Its Value

Trump Reimposed Sanctions Against Iran While Rial lost 80% of Its Value

First wave of US sanctions against Iran are being reimposed today, August 6. The sanctions will target automobile, gold, steel and other industries. Sanctions on Iranian oil are expected to be reimposed in November.

 

The US announced it will reimpose sanctions in May, and the Iranian currency immediatly began to lose its value. A week ago the Iranian rial hit the record low of 100,000 rials to one dollar. The currency lost 80% of its value during the last year. The drop of rial caused significant inflation, and a range of protests broke out in major cities of the country.

 

In April, the government of President Hassan Rouhani fixed the rates of rial at 42,000, banning the sellers from trading at unofficial rates. The government then was forced to soften its policy and decided to lift the ban in August.

 

Western countries have been using sanctions against Iran for decades now. In 2015, a historical deal was signed between the parties for stopping nuclear activity of Iran and relaxing Western sanctions. However, in 2018, President Trump, a long-time critic of the Iran deal, announced the US would exit the agreement despite the United Nations announcements that Iran was in compliance with the terms.   

 

 

 

Earlier in June, Trump said he is ready to meet Iranian leader, but Iran’s foreign ministry rejected the possibility of a meeting with the American president.