$1 equals 2.5 million rials in Iran:Currency hits record low as US sanctions worsen economic crisis

Iran’s currency, the rial, fell to its lowest-ever level on Tuesday. It now takes 2.5 million rials to buy $1. Before the war began, on February 27, $1 was worth around 1.7 million rials. This means the Iranian currency has fallen by nearly 50% in just seven months. The Central Bank of Iran’s official exchange rate is around 1.65 million rials per dollar. However, ordinary people have to buy dollars at the market rate. The rial’s decline against the dollar is largely attributed to the war, US sanctions and the US blockade on Iranian oil. These have affected Iran’s revenues and the availability of dollars, causing the rial to weaken continuously. Iran has been under sanctions for years Iran’s economy has been under pressure from international sanctions for years. The crisis has intensified since the war began, with new sanctions and the US blockade on Iranian oil adding to the pressure. Iranian Foreign Minister Abbas Araghchi told Iranian media late on Monday that the Strait of Hormuz is currently the main focus. The waterway has become the centre of the conflict. Iran has said talks over Hormuz have become more serious. Mediators are trying to broker an agreement between the two sides to end the fighting and reopen the strait. Trump rejects Iran’s proposal to end war US officials told the Associated Press that efforts to negotiate are continuing despite US President Donald Trump rejecting an Iranian proposal. Trump rejected Iran’s proposal on Saturday to end the war and reopen the Strait of Hormuz. He said Iran was in trouble and therefore wanted to reopen Hormuz immediately. Iran proposed reopening Hormuz within 7 days Through Foreign Minister Abbas Araghchi and Qatar, Iran sent the US a seven-day roadmap. It proposed stopping the fighting and reopening the Strait of Hormuz once the conditions were met. Under the proposal, Iran sought relief from restrictions on its oil sales. Iran also asked the US to lift the naval blockade of its ports and release around $12 billion in assets frozen overseas. Iranian President Masoud Pezeshkian said it was now up to the US to decide whether it wanted to end the conflict.