Foreign exchange rates continued their downward trend on Tuesday even as new US sanctions are being imposed on Iran. According to reports from the open market, the rial was traded for 136,500 rials down from the previous day's 140,000 rials.
The euro was traded for 158,000 rials, down 1,000 rials compared with Monday. The gold coin also dropped on Tuesday and fetched 43 million rials. Both gold and currency market have been particularly volatile in the past six months. In May, US President Donald Trump abandoned the 2015 nuclear deal between Iran and the wix powers and re-imposed sanctions in August.
Trump’s moves target Iran’s main source of revenue - its oil exports - as well as its financial sector, in effect y making 50 banks and their subsidiaries off limits to foreign banks.
Voicing opposition to US policy on the day Washington announced a new raft of sanctions on Iran, the European Union earlier this month said it was setting up a so-called special purpose vehicle to be able to continue doing business with Iran and keep the historic nuclear deal alive.
