Iranian Rial Plummets as Sanctions Return, Currency Redenomination Proposed
TEHRAN - The Iranian Rial experienced a historic collapse this week following the reinstatement of United nations sanctions, reaching a record low of 1.1 million per U.S. dollar on the black market as of Sunday, according to currency tracking sources. Simultaneously, Iranian lawmakers have advanced a bill proposing a meaningful currency redenomination.
The proposed legislation, published on the parliament’s website, would see 10,000 Rials exchanged for one new Rial. The bill requires final approval from the Council of the Guardians of the Revolution and the signature of President Masoud Pezeshkian to become law.
The return of UN sanctions, initiated by France, Great Britain, and Germany in August, took effect on September 28th. These sanctions are a response to concerns over Iran’s nuclear program, specifically allegations of intensive uranium enrichment aimed at developing nuclear weapons.
According to the International Atomic Energy Agency, Iran currently possesses approximately 440 kg of uranium enriched to 60 percent.Experts assess that further enrichment to 90 percent would provide sufficient material for the construction of 8-10 atomic bombs. Iranian officials maintain that its nuclear program is solely for peaceful purposes, a claim that contradicts the 2015 agreement which limited uranium enrichment to 3.67 percent.
