Iran rial crashes to record 1.8 million per dollar  

Experts say the fall of rial is likely to further fuel inflation, as rising dollar drives up cost of essential imports — from food and medicine to electronics and raw materials

TEHRAN: Iran’s national rial currency hit a record low on Wednesday of 1.8 million to $1 as a shaky ceasefire with the US and Israel still holds. The rial had remained stable for weeks during the war, which began Feb 28, in part because there was little trading or imports coming into the country.

The rial began to slide two days ago, hitting the record low on Wednesday. Experts warn the fall of the rial is likely to further fuel inflation in a country where many imported goods, from food and medicine to electronics and raw materials, are affected by the dollar rate.

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The war is now in a ceasefire, but a US blockade has continued to increase pressure on Iran’s already-battered economy, cutting into a key source of government revenue and hard currency by stopping or intercepting oil shipments.

The latest slide comes months after a previous currency shock helped fuel nationwide protests in January. At the time, the rial weakened from about 1.4 million to 1.6 million to the dollar in less than a week, deepening public anger over rising prices and fears about the country’s economic future.

Iran’s economy has faced decades of sanctions, chronic inflation and a widening gap between official and open-market exchange rates. The war, which lasted weeks, added new strain to businesses, households and state finances.