By: Denise Simon | Founders Code
Iran’s currency hit a new record low on Sunday, dropping past 100,000 rials to the U.S. dollar as Iranians brace for Aug. 7 when Washington is due to reimpose a first lot of economic sanctions.
The rial has lost about half of its value since April because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the effects of sanctions.
The central bank blamed “enemies” for the fall of the currency and a rapid rise in the prices of gold coins and the judiciary said 29 people had been arrested on charges that carry the death penalty.
On Aug. 7, Washington will reimpose sanctions on Iran’s purchase of U.S. dollars, its trade in gold and precious metals and its dealings with metals, coal and industrial-related software.
Sanctions also will be reapplied to U.S. imports of Iranian carpets and foodstuffs and on certain related financial transactions.