Iranian Riyal has fallen by 38% after US imposed sanctions earlier this year

Iranian Riyal has fallen by 38% after US imposed sanctions earlier this year

The Iranian riyal has fallen by 38% since the beginning of August when it was trading at 106.5 thousand riyals to the dollar. and the Iranian dollar continues to fall against many foreign currencies which is a sign that US economic sanctions have affected Iran badly.

The Iranian riyal hit a record high on Wednesday and according to various market reports, the price of one dollar about 146 thousand riyals, as the economic situation deteriorated after the re-imposition of US sanctions on Tehran.

The Iranian cabinet announced a new foreign exchange deal designed to avoid the impact of US sanctions on the availability of basic commodities on August 5 few days before the US sanctions came back. All goods and medicines were to be imported at the official exchange rate of 44.12 thousand of dollar, assigning ministries of industry, mining and trade to review and control the distribution of commodities and medicines on the basis of the official price of the time of the arrival of goods into the retail network.

Other basic commodities and medicines, are provided with the necessary currency to import them from the secondary market from the proceeds of exports of non-oil products, so that the exporters give up their export earnings in hard currency to the importers. The transactions are carried out through banks and licensed exchange companies. According to that the supply and demand is announced periodically.

The new plan obliged exporters to deposit their dollar proceeds in the country’s economic cycle again, allowing licensed exchange companies to borrow from banks and use them to purchase foreign currency from individuals, as well as allowing natural and legal persons to enter currencies and gold into the country without restrictions.

The fall of the Iranian Riyal severely affected currency traders who began opening hundreds of channels through the application of Telegram, announcing changes in the price of the dollar, as opposed to offering buying tips for the coming days. There has always been a gap between currency traders who are aware of their work and those driven by ignorance and fear, but the informal (black) market has widened that gap, and this is particularly evident in

As soon as the United States found that the sanctions would be reinstated, many wealthy and middle-class Iranians felt they had to engage in the currency trade. They realized that the riyal would soon fall, so the goal was to buy the dollar. Some even sold their homes and invested in dollars To maintain the value of their money, or simply make a profit. Thus the sale if the riyal has further weakened its value, and the Iranian government has tried to stop it in many ways, including banning the official sale of foreign currency, but this has only made the currency trading market less transparent and therefore more exploitative Foreign currency traders have used the Telegram application largely to exploit the lack of transparency in the black market to increase their profits at the expense of their Iranian customers, Foreign Policy magazine reported.

Iran also introduced a committee in the parliament that would monitor the status of work and unemployment crisis in Iran, the committee’s reports indicate that the situation of the labor market is very poor, to the extent that the unemployment rate among Iranian university graduates amounted to between 50 to 63% Among women graduates of the university exceeded 78%.

The Special Committee in support of national production and monitoring of the implementation of Article 44 of the Iranian Constitution at the Parliament meeting on Wednesday presented a detailed report on the situation of work, unemployment and unemployment crisis in the government of Hassan Rowhani. And according to that report only as few as 47% of workers were included in social security for a period of 11 years starting from 2005. Furthermore, many workers working in industrial workshops and factories are known to receive extremely low salaries and wages, that have pushed them to stay below the poverty line, most of them stated that according to their monthly income there is no difference between them and the unemployed.