Iran’s currency plummeted to an all-time low on Wednesday as former US President Donald Trump edged closer to regaining the presidency, indicating potential new challenges for Tehran amid its ongoing involvement in the Middle East’s conflicts.
The rial was trading at 703,000 to the dollar, according to traders in Tehran, with fluctuations expected throughout the day. In a bid to stabilise the currency, Iran’s Central Bank may inject more foreign currency into the market, as it has done in the past.
This latest decline adds to the rial’s ongoing struggles, which have already seen a dramatic fall in value, reflecting a gloomy atmosphere among some Tehran residents.
In 2015, when Iran secured the nuclear deal with world powers, the rial was valued at 32,000 to the dollar. By July 30, the day President Masoud Pezeshkian was sworn in, the exchange rate had risen to 584,000 to the dollar.
Trump’s decision to withdraw the US from the deal in 2018 sparked years of escalating tensions, which continue to affect relations between the two nations.
Iran’s economy has been under immense strain due to international sanctions, particularly concerning its advancing nuclear programme, which now involves uranium enrichment close to weapons-grade levels.
Pezeshkian, who assumed power after the tragic death of President Ebrahim Raisi in a helicopter crash in May, had pledged to negotiate a deal aimed at easing Western sanctions.
However, the Iranian government has spent weeks attempting to downplay the impact of the US presidential election on Tehran, with a brief statement from Fatemeh Mohajerani, spokesperson for Pezeshkian’s administration, affirming that the election outcome would not significantly affect Iran’s position.
“The major policies of America and the Islamic Republic are fixed, and they won’t heavily change by people replacing others. We have already made necessary preparations in advance,” she stated.
Despite this, tensions remain high, with Iran still deeply entrenched in the Middle East’s ongoing conflicts. Its allies, including militant groups and factions within the “Axis of Resistance” such as Hamas, Hezbollah, and Yemen’s Houthi rebels, continue to be embroiled in violence. Israel is intensifying its military operations in Gaza and Lebanon, targeting Hamas and Hezbollah, while Iran assesses the aftermath of Israeli strikes on October 26 in retaliation for Iranian ballistic missile attacks.
Iran has warned of possible retaliation against Israel, where U.S. troops are now stationed to defend against missile threats.Frances Ibiefo
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