Iran's currency falls to record low amid falling economy

Iran’s currency rial kept hitting new lows on Friday and broke another resistance point, dropping to 540,000 to the US dollar and 570,000 to the euro.

The new record low was recorded in unofficial trading on Friday, which is weekend in Iran and many people are waiting to see the trade rate Saturday morning.

Last Monday, the country experienced a shock when the rial fell to more than 500,000 against the US dollar from 460,000 only a week earlier and 300,000 in late August.

The cash-strapped regime is trying all the tricks to stop the devaluation of its currency but to no avail as the inflation rate is rising and people are desperate as they cannot afford basic foods.

If the rapid slide continues in the coming days, it will make daily living almost impossible for ordinary Iranians, who already cannot afford higher-priced meat, dairy and other necessities.

According to informed Iraqi source, the recent trip by Iran’s Foreign Minister Hossein Amir-Abdollahian to Baghdad was focused on ways to retain the flow of foreign currency from the neighboring country.

Earlier in the month, Iran International obtained information that the Islamic Republic is suffering from heavy financial losses because a huge amount of its money is blocked in Iraq because of US sanctions.

Washington has imposed new restrictions on dollar transfers to Iraq as the Arab country’s banking officials believe there is widespread money laundering sending funds to Iran and Syria.