The rial has faced several significant drops in 2020, but this new decrease in value sets an alarming precedent for the Islamic Republic concerning its future.
For the first time ever, the Iranian rial has breached the 300,000-barrier concerning its value in comparison to the US dollar. There has been a continuous downward trend over the last year, resulting in several all-time lows for the Iranian currency.
The pandemic of COVID-19 certainly played a role in 2020, but the true driving force behind such a depreciation in value can primarily be credited to economic sanctions implemented by the Trump administration, which began with the US withdrawal from the 2015 Joint Comprehensive Plan of Action (JCPOA), or Iran Nuclear Deal. Following their withdrawal, the US reimplemented sanctions on the world’s number one sponsor of terror.
Additionally, since doing so, the US has now introduced several new sanctions on Iran and those who support its regime.
Unemployment in Iran has surpassed 16% according to the International Monetary Fund (IMF). Furthermore, several experts expect its gross domestic product (GDP) to shrink by approximately 7%.
