Iran eases currency rules, hoping to buoy rial ahead of sanctions

  • Iran eases currency rules, hoping to buoy rial ahead of sanctions

Iran eases currency rules, hoping to buoy rial ahead of sanctions

Trump's offer for dialogue came after Pompeo seemed to suggest support for a change in Iran leadership, telling an audience of Iranian expats in California that the regime had been a "nightmare".

As Iran reels from the economic war the waging on it, the country is hoping to avoid further damage from fast-approaching sanctions by launching a new digital currency, according to Iranian media reports.

Iran had hoped the lifting of sanctions would allow it to replace its aging commercial airline fleet, but the USA withdrawal has halted billion-dollar deals struck with Airbus and Boeing.

The sanctions, which will target Iran's central bank and make it hard for the country to conduct worldwide business, including the exportation of oil and minerals, were lifted when Tehran signed the global nuclear deal in 2015 and agreed to dismantle most of its nuclear production facilities.

Experts see a number of possible outcomes for the current USA policy toward Iran.

"It's good for the country, good for them, good for us and good for the world". While the Trump administration has said it wants to cut Iranian oil exports to zero by November 4, most analysts viewed that target as unlikely.

The State Department on Monday announced that sanctions lifted under the 2015 nuclear deal with world powers, which Trump withdrew from in May, would begin snapping back on August 6.

US Secretary of State Mike Pompeo said he supports Trump's willingness to sit down and talk with Iranian leaders.

Pompeo noted that the US has long designated Iran as the world's foremost state sponsor of terrorism and that Iran can not expect to be treated as an equal in the global community until it halts such activities.

The autarkic "resistance" model showed its limits in terms of ensuring the growth of Iran's economy and sating the demands of Iran's youthful demographic, sparking calls by factions among Iran's elites to secure foreign investments.

In the meantime, he said, "we're going to enforce the sanctions".

So, without any direct negotiations happening, how do Iran and the US ever get anything done?

We "remain firmly committed to ensuring (the deal) is upheld and we continue to abide by our commitments", the second European diplomat said.

Iran's economy was plunged into a downward spiral following Trump's announcement that the United States was scrapping the nuclear deal.

The plunge in the currency and soaring inflation have sparked sporadic demonstrations against profiteering and corruption, with many protesters chanting anti-government slogans.