The Iranian currency Riyal has reached its lowest level ever against the dollar. The reason for this is the ongoing war with America for the last six months and the strict economic sanctions imposed on it. Understand the whole matter by answering the questions…. Question 1: What is the latest update regarding Iranian currency? Answer: Iran’s currency Rial has reached its lowest level ever against the US dollar in the unregulated market. According to data from currency tracking website Bonbast, the price of 1 US dollar became 2 million Iranian Rials on Monday. Question 2: Why did the Riyal suddenly fall so drastically? Answer: US President Donald Trump had announced a major economic action against Iran last week. Since this announcement, the Riyal has fallen by about 4.5%. Question 3: What steps is America taking against Iran? Answer: America’s objective is to isolate Iran economically. For this, America is warning Iran’s remaining selected trading partners, blockading its main ports in the Persian Gulf and trying to completely stop oil exports, which are considered the main source of foreign exchange. Question 4: What effect has this had on Iran’s oil business and banking? Answer: According to Iran’s Central Bank Governor Abdolnasser Hemmati, the country’s crude oil exports have “almost completely stopped”. Apart from this, the United Arab Emirates (UAE), one of Iran’s largest trading partners, has also stopped all financial transactions with Iran until further orders. Question 5: What statement has the US administration given on this action? Answer: US Treasury Secretary Scott Besant wrote in the Financial Times, “Our objective is to cut all the economic lifelines that are running this system, so that Tehran is completely isolated.” He warned that ‘D-Day’ has begun on the economic front. Question 6: What do Iran’s domestic media and analysts have to say about this decline? Answer: According to Iran’s leading business newspaper ‘Donia-e Ektesad’, this crisis has deepened due to obstacles in foreign exchange transfers and falling exports. Along with this, the increasing demand for imports in the country and fears of inflation have together weakened the currency. Question 7: What is China’s stand on this entire matter? Answer: China, the country that buys the most oil from Iran, has said that America’s economic pressure will not work. China has appealed for a diplomatic solution to the war. Question 8: What is Iran’s plan to counter American pressure? Answer: Iran’s Foreign Minister Abbas Araghchi has said that his country will double trade with pro-China partner countries to counter American pressure. Question 9: What effect will the collapse of the Riyal have on the general public? Answer: Due to the weakening of any currency against the dollar, everyday essentials like medicines and food become increasingly expensive. This creates a risk of hyperinflation.
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Iran’s currency Riyal reached 2 million per dollar: This is the lowest level ever, economy deteriorated due to US sanctions.
