Iran’s rial falls by 3% as Tehran grapples with war aftermath
The rial has fallen considerably since May, as officials lash out against the US despite the recent conflict coming to a close.
Iran’s currency fell 3% on Monday as the country grapples with the aftermath of the war with Israel.
What happened: The rial was trading at 910,000 to the US dollar shortly before 2:00 p.m. ET (9:30 p.m. Tehran time) on Monday, marking a 3% drop from the rate on Sunday, according to market data.
Despite the decline, the rial is performing better than it did in April, when the Associated Press reported that it had fallen to a historic low of 1,043,000 to the dollar. By the end of May, the currency had rebounded slightly to around 820,000 to the dollar.
Background: The Iranian economy is facing a number of struggles. An electricity shortage began last year, despite Iran having the second-largest natural gas reserves and the fourth-largest oil reserves in the world. The Carnegie Endowment for International Peace noted in a report last week that government mismanagement and US sanctions are to blame for the crisis.
