The Iranian rial exchange rate has dropped to 1.8 million per US dollar

Over the past two days, the Iranian rial has begun to depreciate rapidly and as of April 29 had already fallen to a record 1.8 million per dollar.

As reported by BAKU.WS, this was reported by The Washington Post (WP).

Prior to this, the currency had remained relatively stable due to minimal import and export volumes. At the end of March, the rial had even strengthened to 1.559 million per dollar after the U.S. partially authorized the sale of Iranian oil.

However, since then Washington has moved to blockade the Strait of Hormuz for Iranian vessels, while Tehran itself has been blocking the passage of all other ships. As of the end of April, a ceasefire is in effect between the countries, but negotiations have effectively reached a deadlock.

Experts interviewed by the publication did not rule out that the rial's decline would exacerbate inflation in the country, since trade is significantly dependent on imports, including food, medicine, and electronics.

The last time Tehran carried out a redenomination of the national currency was in the fall of last year. However, such a step did not prevent further decline of the rial. In March, a banknote with a denomination of 10 million rials was introduced into circulation, as the country began running out of cash. The currency's decline and, consequently, the rise in prices of nearly all goods became one of the causes of mass protests in Iran during the winter.