Iran’s rial has plunged 11% in the past month, reflecting growing uncertainty over the possibility of renewed diplomatic talks with the US. The weakening currency signals economic strain as hopes for easing sanctions and reviving the 2015 nuclear deal fade.
Market analysts give the following reasons for the depreciation: Political tensions, sanctions pressure, and reduced foreign exchange reserves. Without an agreement in talks, Iran’s economy will still face perpetual inflation, increasing prices of imports, and decreased investors’ confidence.
However, Tehran argues that it remains available for diplomatic dialogue, but no sign has appeared from Washington concerning a significant shift in policy. With uncertainty dominating the situation, the fall of the rial may also worsen the economic situation of Iranian citizens.
