Iran's currency rial falls to record low, reaching 2.5 million to 1 dollar

The value of Iran's legal currency Rial (Rial) fell to a record low today (29th). Local businessmen in Iran have offered an exchange rate of 2.5 million Rial to 1 US dollar, reflecting the continued erosion of the Iranian economy by the war in the Middle East.

The Associated Press reported that since the outbreak of war between the United States and Iran in February this year, the value of the rial has continued to fall. Iranian oil has been unable to be exported due to the US military naval blockade. Coupled with the new round of US sanctions since the war began, the Iranian economy has plunged into a free fall.

The last time the rial fell below its historical low was on September 2, when the exchange rate was 2.2 million rials per US dollar. Now, just 27 days later, the exchange rate has fallen to 2.5 million rials per US dollar.

U.S. Secretary of State Marco Rubio told "Fox News" this week that Iran is heading for an economic "disaster" and that the new U.S. sanctions package, combined with preventing Iran from exporting oil, has had the desired effect.

"So when you cut off their funding through (blocking) oil sales and sanctions, you're not just punishing them, you're preventing them from getting the funds to attempt to kill Americans, people around the world, their own countrymen, prevent them from building weapons, and ultimately prevent them from crossing the threshold to develop a nuclear weapon," Rubio said.