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If you haven't heard, iran's rial has hit an "all-time low" against the US dollar, losing about 70% of its value in a year. Here's an article: the decreasing value of their currency is due to international sanctions from Eu union and USA, as a measure to stop Iran's nuclear program (they think iran is building nuclear weapons). Then another sanction was pressed against iran; an embargo on their oil. Iran gains most of its revenue from exporting oil, in fact 80% of its profits, so clearly this is a big loss and will also further decrease the rial's value. Plus, “On New Year's Eve, President Barrack Obama signed into law sanctions against any entity which dealt with the Central Bank of Iran” - so they're pretty much screwed. I'm studying economics in high school and i'd like to make an essay out of this. Do you lots have any suggestions to what the government can do in order to increase the exchange rate? it's not just a matter of decreasing interest rates and using foreign reserves. One solution is to just simply stop the nuclear program, since thats what triggered it all. thanks.
Foot in the mouth is what they call it in English. Iran is unlikely to do that. Since you asking from USA, the host of Y!A , you've already answered in the last sentence. Economists are seldom in tune with reality. The last time the best advice POTUS got was to ask Nixon sell the gold and clear the Vietnam dirt. Your ohio suggests that you better pray for peace. Seriously, I doubt whether Iran Government gives a damn to Dollar rate. They get from their friends what they could have bought from EU and USA. And, Iran is not the only country under sanctions.
The solution is to stop building nuclear weapons, and allow international inspectors to confirm that this is the case. Then sanctions would be lifted, and economy will recover.