Iran rial plunges to new lows amid unrest, international isolation

Men look at currency exchange rates at an exchange shop in Tehran on February 21, 2023. (Photo courtesy: AFP)
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Updated 26 February 2023
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Iran rial plunges to new lows amid unrest, international isolation

  • Iran’s rial has lost nearly half of its value since the start of nationwide protests last year
  • Iranians have been turning to dollars, other hard currencies or gold to protect savings

DUBAI: Iran’s currency fell to a record low against the US dollar on the unofficial market on Sunday, amid the country’s increasing isolation over its disputed nuclear program, human rights violations and the supply of drones to Russia.

The US dollar was fetching as much as 601,500 rials on Iran’s unofficial market on Sunday, compared with 575,000 on the previous day and 540,000 on Friday, according to foreign exchange site Bonbast.com.

Iranian authorities have blamed the currency’s fall on “the enemies’ plot” to destabilize the Islamic Republic after months of unrest sparked by the death in custody of a young woman on Sept. 16.

The rial has lost nearly half of its value since the start of nationwide protests, the boldest challenge to theocratic rule since the 1979 Islamic Revolution.

With protests in the Sunni-populated areas of Iran persisting, demonstrations in other parts of the country have waned in the past few weeks amid the state’s harsh crackdown on protests.

The clerical leaders fear economic misery could ignite more protests when Iran faces mounting Western pressure over issues ranging from “brutal” clampdown on unrest, its disputed nuclear program and the war in Ukraine, where Western states say Russia has used Iranian drones.

Iran denies supplying drones to Russia for use in the Ukraine war.

The decreasing likelihood of salvaging Tehran’s 2015 nuclear pact with world powers amid stalled talks since last year could also mean that crippling economic sanctions re-imposed by Washington when it ditched the pact in 2018 will continue to weigh on Iran’s economy.

Faced with the prospect of further economic hardship, Iranians have been turning to dollars and other hard currencies or gold to protect their savings amid an inflation above 53% and rising prices.

To calm the market and ease demand for dollars, the central bank on Saturday lifted a ban on private exchange shops selling hard currencies.


UN nuclear watchdog says it’s unable to verify whether Iran has suspended all uranium enrichment

Updated 58 min 22 sec ago
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UN nuclear watchdog says it’s unable to verify whether Iran has suspended all uranium enrichment

VIENNA: Iran has not allowed the United Nations nuclear watchdog to access nuclear facilities affected by the 12-day war in June, according to a confidential report by the watchdog circulated to member states and seen Friday by The Associated Press.
The report from the International Atomic Energy Agency stressed that therefore it “cannot verify whether Iran has suspended all enrichment-related activities,” or the “size of Iran’s uranium stockpile at the affected nuclear facilities.”
The IAEA report on Friday warned that due to the continued lack of access to any of Iran’s four declared enrichment facilities, the agency “cannot provide any information on the current size, composition or whereabouts of the stockpile of enriched uranium in Iran.”
The report stressed that the “loss of continuity of knowledge over all previously declared nuclear material at affected facilities in Iran needs to be addressed with the utmost urgency.”
Iran long has insisted its program is peaceful, but the IAEA and Western nations say Tehran had an organized nuclear weapons program up until 2003.
Highly enriched material should be verified regularly
According to the IAEA, Iran maintains a stockpile of 440.9 kilograms (972 pounds) of uranium enriched up to 60 percent purity — a short, technical step away from weapons-grade levels of 90 percent.
That stockpile could allow Iran to build as many as 10 nuclear bombs, should it decide to weaponize its program, IAEA director general Rafael Grossi warned in a recent interview with the AP. He added that it doesn’t mean that Iran has such a weapon.
Such highly enriched nuclear material should normally be verified every month, according to the IAEA’s guidelines.
The IAEA also reported that it had observed, through the analysis of commercially available satellite imagery, “regular vehicular activity around the entrance to the tunnel complex at Isfahan.”
The facility in Isfahan, some 350 kilometers (215 miles) southeast of Tehran, was mainly known for producing the uranium gas that is fed into centrifuges to be spun and purified.
Israel has struck buildings at the Isfahan nuclear site, among them a uranium conversion facility. The US also struck Isfahan with missiles during the war last June.
The IAEA also reported that through the analysis of commercially available satellite imagery, it has observed “activities being conducted at some of the affected nuclear facilities, including the enrichment facilities at Natanz and Fordow,” but it added that “without access to these facilities it is not possible for the Agency to confirm the nature and the purpose of the activities.”
The confidential IAEA report also said Friday that Iran did provide access to IAEA inspectors “to each of the unaffected nuclear facilities at least once since the military attacks of June 2025, with the exception of Karun Nuclear Power Plan, which is in the early stages of construction and does not contain nuclear material.”
IAEA joined Geneva talks between Iran and US
The IAEA reported on Friday that Grossi attended negotiations between the US and Iran on Feb. 17 and Feb. 26 in Geneva at which he “provided advice on issues relevant to the verification of Iran’s nuclear program.” The report said that those negotiations are “ongoing.”
The Trump administration has held three rounds of nuclear talks this year with Iran under Omani mediation. Thursday’s round of talks in Geneva ended without a deal, leaving the danger of another Mideast war on the table as the US has gathered a massive fleet of aircraft and warships in the region.
Oman’s Foreign Minister Badr Al-Busaidi said technical talks involving lower-level representatives would continue next week in Vienna, the home of the IAEA. The agency is likely to be critical in any deal.
The US is seeking a deal to limit Iran’s nuclear program and ensure it does not develop nuclear weapons.
Iran says it is not pursuing weapons and has so far resisted demands that it halt uranium enrichment on its soil or hand over its stockpile of highly enriched uranium.
Similar talks last year between the US and Iran about Iran’s nuclear program broke down after Israel launched what became a 12-day war on Iran, that included the US bombing Iranian nuclear sites.
Before the June war, Iran had been enriching uranium up to 60 percent purity.