Iranian currency rial continued losing its value and was trading at 20,600 rials per dollar on Thursday.
In January, the rial broke through a psychological barrier by trading over 20,000 rials per dollar, prompting the Central Bank of Iran (CBI) to devalue the official exchange rate to 12,260 rials per dollar and increasing the bank deposit interest rate to 21 percent to strengthen the national currency. But in the past two weeks the rial started a sharp decline and yesterday passed the 20,000 mark again.
The new sanctions against the country are triggering the currency’s decline. Today, the new U.S. sanctions against international banks engaged in transactions with CBI went into effect. On Sunday, the EU embargo of Iranian oil and the ban on insuring tankers carrying Iranian crude will begin.