NCRI – The value of the dollar exchange rate in open markets in Iran reached 35,000 rials for a dollar on Sunday after a week of continued surge.
The drop in the value of the rial comes after the Iran nuclear talks between the Iranian regime and the group of 5+1 countries failed to reach a comprehensive deal to curb the regime’s nuclear program in exchange for lifting crippling international economic sanctions.
With the rise in the dollar, the value of gold also increased.
Concurrently, the stock market in Iran experienced a plunge. State news agency IRNA reported that the stock indicator in Tehran dropped by 1,200 points on Tuesday, November 25, only a day after the extension of the nuclear talks.
Iran’s national budget for the current Iranian calendar year had been based on an oil price of $100 per barrel and exports of about one million barrels per day.
The regime has been forced to adjust its budget for next year based on a plunging oil price.
Minister of Finance and Economic Affairs Ali Tayebnia said the national budget bill for the Iranian calendar year 1394 (March 2015-March 2016) will be based on oil priced at $70 a barrel and an official currency exchange rate of 26,500 rials to one US dollar.
The sharp dip in the oil price, now around $70 a barrel, has dramatically worsened the regime’s budget deficit.
Some experts estimate the oil price could fall to $50 per barrel in 2015, spelling further misery for the Iranian economy.