Iran’s currency falls to new low as US blockade, sanctions impact trade
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- Iran saw its rial plunge to 1.81 million per US dollar on the open market on Wednesday, after earlier hitting 1.54 million earlier in the week.
- U.S. has imposed a naval blockade that the Central Command says has cut off economic trade in and out of Iran’s southern waters.
- Iran allocated $1 billion from its sovereign wealth fund to purchase food for citizens amid soaring inflation.
- Iran’s non‑oil trade fell 16 % year‑on‑year to $110 billion, with a 29 % drop in monthly volume after the war began on Feb 28.
- Iran is empowering border provinces to import essential goods by cutting red tape, and reinstated a subsidised exchange rate to curb prices.
Why it matters: Iranian citizens face soaring food costs as the rial hits 1.81 million per dollar, while the U.S. blockade squeezes trade, cutting Iran’s non‑oil imports by $58 billion and deepening inflation.
