Donald Trump had said that, if elected, he would basically toss out the 2015 nuclear deal made between Iran and many of the world’s most prominent nations. The agreement brought an end to economic sanctions against Tehran in exchange for that country’s willingness to accept a variety of measures designed to curb its ability to acquire nuclear weapons. Trump’s objections to the nuclear deal are the same harbored by so many; namely, that the inspection regimes put in place by the terms are poor, and that the lifting of sanctions provides to Iran access to hundreds of billions of dollars that may be used to finance acts of terrorism against the U.S. and its allies.
Well, Trump is now the next president, and the response of the rial, Iran’s currency, to his election seems to indicate that few over there are optimistic about what that will mean for the country. As a matter of fact, according to Reuters, the rial reached a record low on Monday when it dropped to 41,500 units to one dollar.
Although economists are citing a variety of reasons for the rial’s acutely bad performance of late, they admit that Trump’s impending occupancy of the Oval Office is an ugly sign for the currency. Were he to severely curtail, or kill outright, the Iran nuclear deal, potential trading partners would likely avoid doing business with Tehran. As it is, the billions upon billions of foreign money on which Iran had been counting, once the deal was reached, to help shore up its infrastructure has been slow in coming because of the fears harbored by international banks of running afoul of the U.S. Now, with such an anti-deal hawk about to enter the White House, things will likely only worsen for the Iranian economy, including for its currency.
By Robert G. Yetman, Jr. Editor At Large