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The rial was trading at a months-high of 112.500 against the US dollar on Monday afternoon local Iranian time. according to currency rate websites and local media reports.
That comes a month after the rial began surging against foreign currencies despite rising tensions between the United States and Iran in the Persian Gulf.
The rial plunged from highs of 50.000 against the dollar in early months of 2018 to historic lows of 190.000 in September. just before US President Donald Trump imposed a series of new sanctions on Iran.
The new jump for the rial came a day after Iranian Foreign Minister Mohammad Javad Zarif unexpectedly flew to France to hold talks with senior officials of the country while they were hosting negotiations between G7 leaders. including Trump. on how to find a way out of a the current political standoff with Iran.
Trump hinted during G7 summit that he might have second thoughts about Iran sanctions as he faces the prospect that his policy of maximum pressure might fail permanently.
Trump claimed in May. when he toughened bans on Iran’s sale of oil. that the country would be forced to resume talks on its nuclear program to save its economy from a freefall.
However. reports over the past months have suggested that Iran has managed to weather the harsh impacts of the American sanctions.
The Bloomberg said in a report last week that Iran’s tightened control on currency transfers and its reform plans for various sectors of the economy had already yielded results. adding that businesses and households were adapting to the situation that has followed the sanctions.
On Saturday. The Statistical Center of Iran (SCI) announced that inflation rate has declined by 6.4 percent. adding that it is the first such decline after 16 months of turbulence since Trump unilaterally withdrew Washington from the nuclear deal between 5+1 and Tehran.
The announcement comes amid reports suggesting that Iran is emerging from economic losses suffered as a result of US sanctions.
The sanctions began in November 2018. five months after US President Donald Trump withdrew from an international deal on Iran’s nuclear program.
Claiming that the bans were working properly. Trump tightened them in May. only to see that Iran was finding new solutions to recoup the losses.
Since earlier last month. Iran’s national currency rial has regained some of its lost value. currently trading at 116.000 against the US dollar. and significantly up from historic lows of 190.000 in September 2018.
Inflation for staples. medicine and basic goods declined in August. according to the SCI’s Saturday statement. with 56.6 and 35.2 percent for food and non-food items. respectively.
On Thursday. Iranian First Vice-President Eshaq Jahangiri underscored that the measures and plots hatched by Washington to lead Iran`s economy into collapse have all failed.
We have been able to defeat the US plots with the strategy of resistance. Jahangiri said. addressing a ceremony in the Northern city of Noshahr.
The US threatens the foreign governments and companies (not to cooperate with Iran) but it has not been able to attain its most important goal. that is the collapse of Iran`s economy. he added.
In relevant remarks in July. Jahangiri stressed that his country`s economy had remained stable one year after the US imposed the toughest embargos against Tehran.
The US imagines that it can zero down our oil sales by exerting pressure on the countries which purchase Iran`s oil to lead Iran`s economy towards a collapse. but fortunately. the situation of Iran`s economy enjoys an acceptable stability one year after the US oil sanctions. Jahangiri said in a meeting with Head of the International Liaison Department of the Communist Party of China Song Tao in Tehran.
He described China as the main economic partner of Iran and oil customer. and said. All high-ranking Iranian officials have put the strategy to develop ties with China on their agenda as a serious mechanism.
