EU sanctions on the Iranian economy yesterday forced an imediate reaction on the currency markets.  The Rial, official currency of the Iranian people has now fallen by over 71% against the USD since September last year.  Senior US Treasury Department statement dedicated this directly to the measures imposed by the U.S. and international partners on the Tehran leadership.  After yesterday’s new Oil sanctions, the Rial fell back a further 10% and met its new record levels.

The EU officially passed new sanctions focusing on oil imports from Iran.  In parallel, the U.S. government passed furher santions on the banking industry this time against the final of the five state-owned banks to receive such crippling measures. This bank represented the final lifelines to the IMF and almost complete cut-off from regular international finance.

THe Rial unofficial exchange rate in Iran settled at just over 20,500 rials against the USD.  This figure represents a 12% increase in USD value against the Rial in just under a week of trading when it was trading at just under 18,000 rials per USD.  Back in October 2011 when the recent round of sanctions begun in full swing the rial was trading at around 12,500 rials to the USD.

In consequence of the rial devaluation commodity trading in Iran has become the safe haven for traders with the price of gold coins rising by over 25% since 18th January.