A storm threatening Iran after the historic collapse of the riyal and the wave of demonstrations

A storm threatening Iran after the historic collapse of the riyal and the wave of demonstrations



Monday 6 August

WASHINGTON ( Reuters)
- US Secretary of State Mike Pompeo said on Monday that Washington would retaliate against Iran after it suspended it under a nuclear deal between Tehran and Damascus, which Trump has canceled , would have a major impact on Iran's economy. As it will not enable the government of Iran to buy US banknotes, and will be subject to a wide range of industries, including textiles and carpets for sanctions, as well as the embargo, which will be the import of its oil later and penalties to be landed in foreign companies to deal with.

Iran is witnessing protests over economic conditions, deteriorating living conditions, rising unemployment and rising prices in the country's markets amid a severe foreign exchange crisis.

An attempt by the Iranian government in April to impose a fixed rate for the riyal led to a boom in currency exchange on the black market, forcing the bank to back down from its plan and later causing the currency to fall to record highs in June.

The Iranian riyal recorded an unprecedented deterioration against the US dollar, and the Iranian riyal fell to 112,000 riyals against the dollar on the black market.

The sharp fall of the Iranian currency against the dollar and other foreign currencies has led to a significant rise in the prices of cars, real estate and commodities, especially imported ones.

The Iranian riyal has been steadily declining for years, but its decline has accelerated in recent months after the US decisionThe withdrawal from the nuclear deal with Iran in May increased the pressure on the riyal.

The central bank has been criticized especially for its handling of the cash crisis and the loss of more than half of the Iranian riyal against the dollar last year, prompting the government to sack the deputy director general of the foreign exchange department of the central bank, Ahmed Araghji.

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