Iran’s Economic Woes Worsen Before New US Sanctions Kick In

NEW YORK, NY - SEPTEMBER 20: Hassan Rouhani, President of the Islamic Republic of Iran, addresses the United Nations General Assembly at UN headquarters, September 20, 2017 in New York City. The most pressing issues... NEW YORK, NY - SEPTEMBER 20: Hassan Rouhani, President of the Islamic Republic of Iran, addresses the United Nations General Assembly at UN headquarters, September 20, 2017 in New York City. The most pressing issues facing the assembly this year include North Korea's nuclear ambitions, violence against the Rohingya Muslim minority in Myanmar, and the debate over climate change. (Photo by Drew Angerer/Getty Images) MORE LESS
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TEHRAN, Iran (AP) — Iran’s currency has dropped to a record low ahead of the imposition of renewed American sanctions, with many fearing prolonged economic suffering or possible civil unrest.

The rial dropped to 122,000 to the dollar on the thriving black market exchange Monday, from the previous low set the day before of 116,000.

Already last month, protesters clashed with police outside parliament in Tehran amid three days of demonstrations sparked by the currency’s plunge, and worries are growing about what might happen once the new sanctions kick in Aug 6.

The central bank on Monday blamed the currency’s free fall on “the enemies’ conspiracies.”

President Donald Trump’s administration announced the restoration of sanctions after he withdrew the U.S. from the Iran nuclear deal in May.

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Notable Replies

  1. After seeing the results of the Arab Spring, I’m not so sure it’s a good idea to destabilize Iran like this.

  2. Avatar for nineo nineo says:

    Theocracy is putrid and should be opposed in all its forms.

    That being said… this is not an effective means of opposition. One of the problems with Trump creating new geopolitical enemies at every turn is that he can’t really control Iran turning to another country for economic relief - like, say, China, for one obvious example.

    They’ll hurt Iran, but not enough. Iran will suffer, scapegoat the USA, and struggle through it. How do I know this? Cause it’s already happened a half-dozen times.

  3. Avatar for paulw paulw says:

    AP: other than the black market rate change, which mostly affects people trying to get dollars before the whole banking embargo happens, is there actual woe?

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