The Iranian rial continues to plummet, despite measures by the country’s Central Bank.
The Governor of Iran’s Central Bank of Iran, Ali Salehabadi, acknowledged yesterday that the Iranian regime Foreign exchange reserves are low. Salehabadi added that the recent depreciation of the Iranian currency is also related to the ongoing protests in the country, and that he expects the value of the Iranian currency to stabilize in the coming days.
Following his statement, and in an effort to halt the trend, the Central Bank of Iran announced an interest rate hike from 18% to 23%. On the other hand, Iranian protesters have been calling on citizens to withdraw the money in their bank accounts, and Iranians are already looking to convert their rials to more stable foreign currencies and assets.
Meanwhile, the value of the rial continues to fall, trading on Monday morning at almost 420,000 rials to the dollar.
The collapse of the Iraqi dinar: Following a sharp drop, the Iraqi currency is trading today at a low of 158,000 Iraqi dinars to the dollar.
The newly-appointed Iraqi Prime Minister, Muhammad al-Sudani, is on the defensive. Known previously as one of the most prominent voices calling for the stabilization of the Iraqi dinar and for frequently criticizing the Iraqi government for not taking the necessary measures to do so, the newly-appointed prime minister now has to face one of the dinar’s worst crashes yet.
Al-Sudani is also known for his close relations with the Iranian regime. His critics are already pointing out that by tying the Iraqi economy to the failing Iranian economy, he has only exacerbated the problem.