Iran's rial hits record low... ‘Economic bullying’ operations and the impact of resumption of armed conflict

From the declaration of economic bullying to the impact of the resumption of armed conflict

(Cairo = Yonhap News) Correspondent Kim Sang-hoon = Due to the influence of the United States' declaration of the so-called 'economic bullying' operation and the resumption of armed conflict, the value of Iran's currency is hitting record lows every day.

On the 2nd (local time), the value of the rial in Iran's black market fell to about 2.2 million rials per US dollar, breaking another all-time low.

The rial exchange rate exceeded 2 million rials per dollar for the first time on the 23rd of last month, and subsequently fell by about 9% after the declaration of the US economic bullying operation.

The exchange rate of the rial against the dollar was around 1.865 million rial until the middle of last month, and a year ago it was about 958,000 rial. The value of the currency has plummeted by less than half in just one year.

On the 24th of last month, the U.S. Treasury announced an 'economic expulsion operation' targeting approximately 60 individuals, organizations, and ships linked to Iran.

This measure significantly expanded the scope of potential 'secondary boycotts (third-party sanctions)' across various sectors, including digital assets, technology, gold, aviation, and shipping.

Since the armed conflict between the United States and Iran has resumed, Iran's economy and crude oil exports are under even greater pressure.

According to industry data cited by Reuters, Iran's crude oil shipments, which averaged about 2 million barrels per day in March, plummeted to 220,000 to 255,000 barrels in August.

On the 1st, Abdolnasser Hemati, governor of Iran's central bank, said, "We have sufficient foreign exchange reserves" and was prepared to inject up to $2 billion into the market to suppress exchange rate volatility.