New U.S. sanctions against Iran, including a ban on gold trading, came in force today. Reacting to the new sanctions, the rial retreated against the dollar in Iran’s open currency markets. On Monday, the currency was traded at 34,000 rials for one dollar. In the days after Rouhani’s victory, the rial had regained some of its lost value, trading as low as 28,000 rials a dollar.
Because of earlier sanctions on banking sector and financial transactions, Iran is increasingly trading its oil for gold with countries like Turkey, and the new ban on gold trading is meant to stop Iran from circumventing those sanctions.