Trump’s Election has Been Terrible for Iran’s Currency

Daily Caller, Jan. 13, 2017 – Iran’s currency sharply declined relative to the U.S. dollar in the last six months, with even more volatility seen since President-elect Donald Trump’s election.
The Iranian Rial lost 20 percent of its value since June 2016 despite sanctions relief from the West. Sanctions relief are a key tenant of the Iranian nuclear agreement between Iran and the permanent five UN security council members and Germany. Despite sanctions relief, and some delivery of frozen assets to Iran, Western banking regulations appear to be the main impediment to Iran’s economy.
Many banks will not do any business whatsoever with Iran due to other Western sanctions that remain on the country. Banks fear that any business with Iran would make them run afoul of U.S. treasury regulations, which have worldwide implications.
Iranian regime President Hassan Rouhani sold the nuclear agreement to the Iranian people by emphasizing the economic benefits to the country in exchange for ostensibly giving up its pathway to a nuclear weapon.
Whether the incoming Trump administration continues to adhere to the Iran deal remains to be seen. When queried by a senator at his confirmation hearing, Secretary of Defense nominee James Mattis said Thursday, “It’s not a deal I would have signed.” Vice President-elect Mike Pence also said during the 2016 election campaign the U.S. would “rip up” the deal in consolation with U.S. allies.
The Iranian government appears terrified that Trump will renege the U.S. from the deal.
“Iran’s understanding in the nuclear deal was that the accord was not concluded with one country or government but was approved by a resolution of the UN Security Council and there is no possibility that it can be changed by a single government,” Rouhani previously reportedly told his cabinet. “The United States no longer has the capacity to create Iranophobia and to create a consensus against Iran.”