Iran's currency has plunged to another record low, dropping past 100,000 rials to the US dollar, as Iranians brace for August 7 when the United States is due to reimpose the first batch of sanctions on their economy.

In May, Washington pulled out of a landmark 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.

The US government decided to reimpose sanctions on Iran upon its withdrawal, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.

On Sunday, the Iranian rial plunged to 111,500 against one US dollar on the unofficial market, down from about 97,500 rials on Saturday, according to foreign exchange website Bonbast.com.

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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.

Iran's government tried to fix the rate at 42,000 in April, and threaten to crack down on black market traders. But the trade continued amid public worries about a prolonged economic downturn.

Tehran was forced to soften its decision in June, allowing more flexibility for certain groups of importers, according to local reports.

On August 7, Washington is expected to reimpose sanctions on the purchase or acquisition of US dollars by the Iranian government, Iran's trade in gold and precious metals, and on the direct and indirect sale, supply and transfer to or from Iran of graphite, raw or semi-finished metals, coal and industrial-related software.

Sanctions will also be reapplied to the importation into the US of carpets and foodstuffs made in Iran, and on certain related financial transactions.

Iran, on the other hand, plans to offer price and tax incentives to private investors to take over idle state projects and help boost the economy.

The plan will offer attractive prices and flexible terms as well as tax holidays for investors who agree to take over some of the 76,000 government projects which are unfinished or idle, Vice-President Eshaq Jahangiri said on state television on Saturday.

"Over the past few months, the country's liquidity has gone into housing, foreign exchange and gold coins, raising prices and provoking public concerns," Jahangiri was quoted as saying by the website of the state broadcaster.

On November 4, 2018, a second set of sanctions is expected to start on industries such as shipping, oil, petrochemicals and the energy sector. The US will pursue efforts to reduce Iran's sale of crude oil.

Iran's oil exports could fall by as much as two-thirds, putting oil markets under huge strain amid supply shortages elsewhere in the world.</s>The Iranian rial has plunged to a record low, dropping to 111,500 points against the US dollar on the unofficial market as Iranians brace for 7 August when the US is due to re-impose sanctions on their economy.

The US pulled out of a 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.

Upon its withdrawal in May, US decided to re-impose sanctions on Iran, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from November or face US financial measures, reported Reuters.</s>
• The Iranian rial fell below 100,000 against the US dollar for the first time.
• US sanctions on Iran go into effect August 6.
• Follow the rial in real time here.

Iran’s currency, the rial, sank to an all-time low over the weekend, falling below 100,000 rials to the dollar, ahead of the first round of US sanctions which are set to go into effect next week.

The rial fell past 112,000 against the dollar on the black market Sunday, according to the Bonbast.com. Its value has more than halved since April.

Iran’s central bank blamed rising gold prices and faulted “enemies” for the sharp selloff.

“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, according to Reuters.

Meanwhile, looming sanctions are weighing on the rial. As part of President Donald Trump’s decision in May to withdraw from the Iran deal, the US has vowed to reimpose tough economic penalties against Iran. The first round of sanctions, set to take effect August 6, include a ban on “significant” purchases of Iranian rials.

The US Treasury Department said it will also sanction US dollars, precious metals, and industrial goods next week, as well as halt Iran’s ability to export carpets and foods into the US and end certain license-related transactions.

Analysts see the first round of US sanctions as a pivotal moment for Iran and its economy, which has already been ailing amid political unrest, embargoes, and corruption scandals.

“Moreover, the window of opportunity for Europe to demonstrate that the nuclear deal is worth salvaging will likely close once the sanctions snap back,” RBC analysts led by Helima Croft wrote in a recent note.

Another round of US sanctions is set to take effect in November, perhaps most notably crippling Iran’s energy sector. The State Department last month called on all countries to stop importing Iranian oil by November or risk facing secondary sanctions.

The chart below shows the rial’s official exchange rate:</s>Tehran — Iran’s currency traded at a fresh record-low of 119,000 to the dollar on Tuesday, a loss of nearly two-thirds of its value since the start of the year as US sanctions loom.

The Iranian rial has been crashing in recent days as the country anxiously awaits the reimposition of full US sanctions, starting on August 6.

The rial hit 100,000 to the dollar for the first time on Sunday and continued its decline on Monday, losing 18% of its value in less than two days.

On January 1, the dollar was worth 42,900 rials.

The government has been in crisis mode, replacing its central bank chief last week.

The central bank issued a statement on Monday, blaming the currency volatility on the "enemies’ conspiracy" and vowing fresh counter-measures "in the coming days".

In April, the government tried to fix the value of the rial at 42,000, but black-market rates exploded as Iranians rushed to illegal traders, seeking to protect their savings by buying dollars, or investing in the hope that the rial would continue to fall.

With banks often refusing to sell their dollars at the artificially low rate, the government was forced to soften its line in June, allowing more flexibility for certain groups of importers.

Having announced in May that it was pulling out of the 2015 nuclear deal, the US is set to reimpose its full range of sanctions in two stages, on August 6 and November 4.</s>According to foreign exchange website Bonbast.com, the rial fell to 112,000 on the unofficial market, down from 97,500 just 24 hours earlier. Since April, the rial’s value has halved because of a weak economy, financial difficulties at local banks and intense demand for dollars among the Iranian people who fear the effects of the sanctions after the US pulled out of the Iran nuclear deal in May. The central bank said in a statement on state television: "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." In May, President Donald Trump withdrew the US from the Iran nuclear deal, struck in 2015 between world powers and Tehran, under which international sanctions were lifted in return for curbs on its nuclear programme.

The USA will now begin reimposing economic sanctions on August 7, and has told countries they must stop imports of Iranian oil from November 4 or face their own financial measures. Sanctions reimposed by Washington will be those on Iran’s purchase of US dollars, its trade in gold and precious metals and its dealings with metals, coal and industrial-related software. Experts have warned that the reintroduction of the financial sanctions could see Iran’s oil exports plummet by up to two-thirds this year. Mr Trump has called the Iran nuclear agreement one of the worst deals ever negotiated but Iran’s European partners in the agreement are preparing a package of economic measures of their own in a bid to salvage the accord.

But France has said it is unlikely that European nations will be able to put the package together before the November 4 deadline on stopping imports of Iranian oil. Tensions between the US and Iran have been at an all-time high in recent days after a senior Iranian military commander hinted on Thursday that Iran is prepared to launch a war and wage a campaign of terror against the United States. Major-General Qassem Soleimani was responding to an explosive tweet from Mr Trump last Sunday night directed at Iran. The US President had written on Twitter: “To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE.

“WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!” The Iranian military commander has claimed that if the US starts a war, “Iran will finish it”. Mr Soleimani, who heads up the Quds Force of Iran's powerful Revolutionary Guards Corps, was reported by various Iranian news agencies as having made his comments during a speech in the city of Hamedan. He said: "As a soldier, it is my duty to respond to Trump's threats. If he wants to use the language of threat, he should talk to me, not to president Hassan Rouhani.”</s>DUBAI — Iran's currency plunged to another record low on Sunday, dropping past 100,000 rials to the US dollar as Iranians brace for August 7 when the United States is due to reimpose a first lot of sanctions on their economy.

In May the United States pulled out of a 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.

Washington decided to reimpose sanctions on Iran upon its withdrawal, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.

On Sunday, the Iranian rial plunged to 111,500 against one US dollar 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.

US President Donald Trump has called the agreement one of the worst deals ever negotiated, but in a bid to salvage the accord, Iran's European partners in the nuclear deal are preparing a package of economic measures to offset the US pullout.

However, France said earlier this month that it was unlikely that European powers would be able to put together an economic package for Iran that would salvage its nuclear deal before November.

On August 7, the United States will reimpose sanctions on the purchase or acquisition of US dollars by the Iranian government, Iran's trade in gold and precious metals, and on the direct and indirect sale, supply and transfer to or from Iran of graphite, raw or semi-finished metals, coal and industrial-related software.

Sanctions also will be reapplied to the importation into the United States of carpets and foodstuffs made in Iran, and on certain related financial transactions.

Iran's oil exports could fall by as much as two-thirds by the end of the year because of the new US sanctions, putting oil markets under huge strain amid supply outages elsewhere in the world.</s>Amir Vahdat And David Rising, The Associated Press 

 



TEHRAN, Iran -- Iran's currency plummeted to a record low Monday, a week before the United States restores sanctions lifted under the unraveling nuclear deal, giving rise to fears of prolonged economic suffering and further civil unrest.

Already last month, protesters clashed with police outside parliament in Tehran in three days of demonstrations sparked by the Iranian rial plunging to nearly 90,000 to the dollar. That followed country-wide economic protests in December and January, in which 25 protesters were killed and nearly 5,000 people were arrested.

The currency hit a new low on Monday, closing at 122,000 to the dollar on the thriving black market, rapidly dropping from 116,000 on Sunday and 98,000 on Saturday. The official exchange rate, available only to businesses with import and export licenses, was about 44,000 to the dollar on Monday, down from 35,000 on Jan. 1.

Iranians have already seen their savings dwindle, and shopkeepers are increasingly refusing to sell certain goods, unsure of their true value. Many fear things will only get worse once the sanctions go into effect.

"If the rate keeps going up like this, nobody knows what is going to happen," said Tehran resident Rasool Shadi. "I think people should stop buying for a while. If they don't buy something, its price will definitely decrease."

The government last week replaced the country's central bank governor Valiollah Seif, whose policies have also been blamed for the rial's fall, and eased regulations on bringing foreign currencies into the country to combat black market trading.

It's too early to tell whether those moves will have any significant effect. Under the new leadership, the central bank on Sunday blamed the currency's free fall on "the enemies' conspiracies ... in line with disrupting the economy as well as disturbing people's peace of mind."

President Donald Trump's administration withdrew from the landmark nuclear accord in May, saying it was too generous to Iran. It has vowed to ramp up sanctions until Iran radically changes its regional policies, including its support for regional militant groups, something the country's leaders have long refused to do.

Tehran-based economist Saeed Leilaz criticized the government for not taking stronger measures, saying it "suffers from horrible inaction and absence of decision making."

"People's concerns are very reasonable in the existing conditions," he told The Associated Press. "They are protecting their own interests by converting their rials to foreign currencies or gold coins."

Fereshteh, a retired civil servant who would not give his last name, fearing repercussions, said he had just bought a medicine he needs, which had gone up in price.

"That's why we are worried," he said. "If the upcoming sanctions are imposed what is going to happen? I hope everything is fixed."

The Trump administration began dismantling the sanctions relief that was granted to Iran under the 2015 nuclear deal in June, a month after he announced the United States' unilateral withdrawal from the international accord.

The Treasury Department gave American businesses and U.S.-controlled foreign firms dealing in certain types of trade until Aug. 6 to wind down their operations or face penalties under U.S. sanctions. Another set of licenses covering other types of commerce, including oil purchases, will be revoked in the coming weeks, with firms given until Nov. 4 to end those activities.

The other parties to the agreement -- Britain, China, Germany, France, Russia and the European Union -- have been scrambling to try and save the deal, under which Iran was given relief from sanctions in return for curbs on its nuclear program.

Their efforts have been complicated by the American threat to punish companies from other countries that continue to deal with Iran, as the Trump administration steps up its efforts to isolate the country and its faltering economy from international financial and trading systems.

Iranian Foreign Minister Mohammad Javad Zarif on Sunday claimed the U.S. strategy would fail, saying he was "confident we can, over the next few months, show the Americans that they must quit their addiction to sanctions."

"Europeans should decide whether their businessmen, banks and governments want to pursue European interests or American interests, or in particular Trump's interests," he said.

Trump has been in a war of words with Iranian leaders, but has also suggested that as the sanctions take effect, he expected them to call and offer to return to the negotiating table.

"We're ready to make a real deal, not the deal that was done by the previous administration, which was a disaster," he said last week. While U.S. intelligence agencies maintained that Iran complied with the Obama-era agreement to halt its nuclear program, Trump had complained that the deal didn't do enough to curb Iran's malign influence in the region.

Iran has ruled out any new talks, saying the U.S. cannot be trusted.

"With this America and the policies it's pursuing, there's definitely no possibility of negotiations," Foreign Ministry spokesman Bahram Ghasemi said during his weekly briefing.

Internationally, oil prices have been rising on concerns about the ongoing dispute and the American push for other countries to cut oil imports from Iran by Nov. 4. Brent crude futures were up 42 cents Monday to $75.12 a barrel.

The looming sanctions have already started slowing the flow of oil out of Iran, and Iranian President Hassan Rouhani has suggested his country could try to close the key Strait of Hormuz shipping lane between the Persian Gulf and the Gulf of Oman if the U.S. doesn't back down.

Last week, Saudi Arabia halted all crude shipments through the Bab El-Mandeb Strait between the Gulf of Aden and the Red Sea, another key route, after Iranian-backed rebels in Yemen attacked two of its tankers passing through, causing minor damage to one.</s>Iran's currency yesterday hit a record low of 100,000 rials to the dollar amid a deepening economic crisis and the imminent return of full U.S. sanctions. The unofficial rate stood at 102,000 rials by midday, according to Bonbast, one of the most reliable sites for tracking the Iranian currency.

The rate was confirmed by a trader who spoke on condition of anonymity to Agence France-Presse (AFP).

The rial has lost half its value against the dollar in just four months, having broken through the 50,000-mark for the first time in March.

The government attempted to fix the rate at 42,000 in April, and threatened to crackdown on black market traders.

But the trade continued with Iranians worried about a prolonged economic downturn turning to dollars as a safe way to store their savings, or as an investment in the hope the rial will continue to drop.

With banks often refusing to sell their dollars at the artificially low rate, the government was forced to soften its line in June, allowing more flexibility for certain groups of importers.

The handling of the crisis was one of the reasons behind last week's decision by President Hassan Rouhani to replace central bank chief, Valiollah Seif.

The currency collapse was encouraged by the U.S. announcement in May that it was pulling out of the 2015 nuclear deal, that lifted certain sanctions in exchange for curbs to Iran's atomic programmer.

The U.S. is set to reimpose its full range of sanctions in two stages on August 6 and November 4, forcing many foreign firms to cut off business with Iran.</s>TEHRAN: Iran's currency is continuing its downward spiral amid a deepening economic crisis and the imminent return of full US sanctions.The Iranian rial fell to 1,12,000 to the dollar on Sunday, from 98,000 to $1 on Saturday. The government-set exchange rate was 44,070 to the dollar, compared to 35,186 on January 1.The rial has lost half its value against the dollar in just four months, having broken through the 50,000-mark for the first time in March.The government attempted to fix the rate at 42,000 in April, and threatened to crackdown on black market traders.But the trade continued with Iranians worried about a prolonged economic downturn turning to dollars as a safe way to store their savings, or as an investment in the hope the rial will continue to drop.With banks often refusing to sell their dollars at the artificially low rate, the government was forced to soften its line in June, allowing more flexibility for certain groups of importers.The handling of the crisis was one of the reasons behind last week's decision by President Hassan Rouhani to replace central bank chief, Valiollah Seif.The currency collapse was encouraged by the US announcement in May that it was pulling out of the 2015 nuclear deal, that lifted certain sanctions in exchange for curbs to Iran's atomic programme.The US is set to reimpose its full range of sanctions in two stages on August 6 and November 4, forcing many foreign firms to cut off business with Iran.</s>IRAN'S currency plunged to another record low on Sunday, dropping past 100,000 rials to the US dollar as Iranians brace for Aug 7 when the United States is due to reimpose a first lot of sanctions on their economy.

In May the United States pulled out of a 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear programme.

Washington decided to reimpose sanctions on Iran upon its withdrawal, accusing it of posing a security threat, and has told countries they must halt all imports of Iranian oil from Nov 4 or face US financial measures.

On Sunday, the Iranian rial plunged to 111,500 against one US dollar 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.

US President Donald Trump has called the agreement one of the worst deals ever negotiated but in a bid to salvage the accord, Iran's European partners in the nuclear deal are preparing a package of economic measures to offset the US.

However, France said earlier this month that it was unlikely European powers would be able to put together an economic package for Iran that would salvage its nuclear deal before November.

On Aug 7, the United States will reimpose sanctions on the purchase or acquisition of US dollars by the Iranian government, Iran's trade in gold and precious metals, and on the direct and indirect sale, supply and transfer to or from Iran of graphite, raw or semi-finished metals, coal and industrial-related software. REUTERS
The Iranian rial hits another record low against the US dollar ahead of August 7, when the first round of fresh United States sanctions against Iran begin.