Historical collapse of the Iranian currency

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The Iranian riyal hit a record low against the US dollar on the informal market as the economic situation deteriorated and the United States re-imposed sanctions on Tehran.

The exchange-rate website Bonbast.com, which tracks the informal market, said the dollar was offered at a price of up to 128,000 riyals.

The currency has been volatile for months because of weak economy, financial difficulties faced by local banks and heavy demand for the dollar from Iranians.

Iranians fear shrinking exports of oil and other commodities as a result of Washington’s withdrawal from the nuclear deal in 2015 and the re-imposition of US sanctions on Tehran.

Parliamentarians dismissed the economy and finance minister three days ago after they blamed him for the collapse of the local currency and increased unemployment. A few weeks ago they sacked the minister of labor.

In addition to a measure to isolate the education minister, 70 deputies signed a memorandum aimed at isolating the minister of industry, mining and trade.

Iran’s official unemployment rate is 12 percent, and among young people it is 25 percent in a country with 60 percent of its 80 million population under the age of 30. The riyal lost more than two-thirds of its value in a year.

Perhaps the worst is the way, with US officials saying they are seeking to cut Iran’s oil exports to zero as a new round of sanctions begins in November.

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