After the United States reinstated sanctions against Iran, today (Saturday) the value of the Iranian currency, the real, fell to its lowest value ever recorded. The value of the real is about 300,000 reals to the dollar. Since mid-September, the currency has fallen by 12%.
In 2015, when the nuclear agreement was signed, the real was 32,000 rials to the dollar. American sanctions have sharply reduced oil exports, Iran’s main source of income.
About a fortnight ago, US Secretary of State Mike Pompeo said that restrictions on Iran had been reinstated to prevent it from developing nuclear weapons. “We welcome the return of all UN sanctions against Iran,” he wrote.
Pompeo called on UN member states to respect sanctions and even promised “consequences” for those who could improve them, but it is highly questionable whether the sanctions that most UN member states oppose are being respected. The “stick” that the US should use against sanction violators is to prevent activity in US markets.
In mid-August, the US proposal to extend the arms embargo against Iran , which was raised at the Security Council in New York , was rejected. The proposal was not adopted after Russia and China opposed it. Eleven council members abstained, including France, Germany and Britain, while the United States and the Dominican Republic were the only supporters. US sanctions against Iran came about a month after the UN proposal was rejected.
Source: Alliance Mag
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