by Reuters and Israel Hayom Staff
Iran's currency hit a new record low on Sunday, dropping past 100,000 rials to the U.S. dollar as Iranians brace for Aug. 7 when Washington is due to reimpose the first round of economic sanctions.Rial plunges below 100,000 to the U.S. dollar as Iranians brace for Aug. 7 when Washington is due to reimpose the first round of economic sanctions
In May, the United States pulled out of a
2015 deal between world powers and Tehran under which international
sanctions were lifted in return for curbs on its nuclear program.
Washington decided to reimpose sanctions
upon its withdrawal, accusing it of posing a security threat. It has
told countries they must halt imports of Iranian oil from Nov. 4 or face
U.S. financial measures.
On Sunday, the rial plunged to 112,000 on
the unofficial market, down from about 97,500 rials on Saturday,
according to foreign exchange website Bonbast.com. Other websites said
the dollar was exchanged between 108,500 and 116,000 rials.
The rial has lost about half of its value
since April because of a weak economy, financial difficulties at local
banks and heavy demand for dollars among Iranians who fear the effects
of sanctions.
The central bank blamed "enemies" for the
fall of the currency and a rapid rise in the prices of gold coins and
the judiciary said 29 people had been arrested on charges that carry the
death penalty.
"The recent developments in the foreign
exchange and gold markets are largely due to a conspiracy by enemies
with the aim of exacerbating economic problems and causing public
anxiety," the central bank said in a statement read on state television.
Judiciary spokesman Gholamhossein Mohseni
Ejei told state television that "29 people have been arrested for
economic disruption and will be soon put on trial. More may be arrested
tonight and tomorrow. Many of them face the charge of 'spreading
corruption on earth,'" Ejei said, referring to a capital offense under
Iran's Islamic laws.
Besides the currency fall, the expected
return of sanctions has triggered street protests including by bazaar
traders usually loyal to the Islamist rulers, and a public outcry over
alleged profiteering and corruption.
On Saturday, Ejei said 18 people had been
arrested over alleged profiteering from foreign exchange dealings and
the illegal importing of luxury cars.
U.S. President Donald Trump has called the
2015 nuclear agreement one of the worst deals ever negotiated, but in a
bid to salvage the accord, Iran's European partners in the deal are
preparing a package of economic measures.
But France said this month it was unlikely European powers could put the package together before November.
On Aug. 7, Washington will reimpose
sanctions on Iran's purchase of U.S. dollars, its trade in gold and
precious metals and its dealings with metals, coal and
industrial-related software.
Sanctions also will be reapplied to U.S.
imports of Iranian carpets and foodstuffs and on certain related
financial transactions.
Reuters and Israel Hayom Staff
Source: http://www.israelhayom.com/2018/07/30/iranian-currency-marks-another-record-fall-as-us-sanctions-loom/
Follow Middle East and Terrorism on Twitter
No comments:
Post a Comment