Iran’s currency hits record low as American sanctions loom

TEHRAN, Iran — Iran’s currency is continuing its downward spiral as increased American sanctions loom, hitting a new low on the thriving black market exchange.

The Iranian rial falls to 112,000 to the dollar on Sunday, from 98,000 to $1 on Saturday. The government-set exchange rate is 44,070 to the dollar, compared to 35,186 on January 1.

The Iranian rial’s been declining steadily for years but the drop has accelerated in recent months after the US decision to pull out of the nuclear deal with Iran in May and announcement of increased sanctions beginning next month.

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.

— AP

Iranian and US banknotes on display at a currency exchange shop in downtown Tehran, Iran, on April 4, 2015. (Vahid Salemi/AP)