The recent news about the US sanctions on Iran has been a shocker for the world. While the US has made its agenda clear about its sanctions on Iran, the oil-rich country has decided not to negotiate with the superpower. This has become a worrying factor for the general public of the country who fear a growing economic uncertainty in the days to come. If left unchecked, this will continue to hurt Iran’s economy, especially its import and export business. This also means further depletion of the Iranian Rial against the US Dollar.
The downfall of the Iranian currency
The Iranian Rial has lost almost two-thirds of its value against the US dollar this year. Because of the US sanctions, a lot of countries have been forced to curb trade relations with the oil country. This is an indication of future troubles for the country. The progress made by Iran so far might be hampered and the citizens of the country might have to go through tough times.
The downfall of the Iranian currency, Rial, has already caused a heavy impact on the Iranian population. To add to this, sanctions from the US are causing further trouble. From rising inflation to growing unemployment in the country, the government of Iran has started seeing tough times. Occasional protests have been seen throughout the country including the capital Tehran. With no statutory action, this could lead to havoc in the country.
Many economists consider this sanction to be the biggest blow to the Iranian economy and the cheapest currency in the world is predicted to become even cheaper for as long as the Trump government is in power. This leaves the ruling government in Iran not much option than to get into talks with the US and agree to their terms.
US sanctions on #Iran may well bring regime change
With crippling US sanctions on the Iranian Regime fully back in place, the Donald Trump administration is saying “Enough” and the rest of the world is being finally forced to listen.https://t.co/kgMFaKcgit pic.twitter.com/dNhlAi2OHE
— IranNewsUpdate (@IranNewsUpdate1) November 9, 2018
Will Iran bounce back?
The country had seen some progress after years of hard times. But with the current scenario, there seems to be no hope for further progress in the country. If the current situation prevails, the cheapest currency in the world might retain its position for years to come. While the President of Iran, Hassan Rouhani, has assured that the US sanctions won’t have a great impact on Iran, the current situation in the country doesn’t seem to be in Iran’s favour. It will be interesting to see what course of action the Iranian government takes to deal with this situation. However, there’s just one thing that the ruling body of Iran should not forget – nothing is more important to a country than the interest of the public. The public can only hope that the situation gets better. Considering the fact that the US sanction can make Iran a solitary nation, the people of Iran are fearful of their future.
There is no denying that the US holds good economic ties with most nations of the world. Due to this reason, Iran has to rethink their strategies and come up with a concrete solution to this problem as soon as possible.
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