currency

Tehran, Iran – Iran’s national currency has plunged to new lows as authorities mobilise to dampen the impact of the naval blockade enforced by the United States.

The Iranian rial shot above 1.81 million to the US dollar on the open market by early afternoon on Wednesday before partially recovering. The embattled currency changed hands for about 1.54 million earlier this week, and its rate was about 811,000 per US dollar a year ago.

The rial had remained relatively stable over the past two months after experiencing an earlier drop as US forces amassed in the lead-up to the US-Israeli war on Iran, which began at the end of February.

The latest freefall follows on from unchecked inflation, which has been increasingly plaguing the Iranian economy as a result of mismanagement and sanctions, and continues to ravage households. Washington now has three aircraft carriers in the region and is bringing in more troops and equipment as Israel expresses readiness to restart fighting, three weeks after a ceasefire began.

Iran’s authorities this week projected a hardened stance on negotiations with Washington, and pledged to fight the naval blockade of Iran’s southern waters, which the US Central Command insisted on Tuesday had “cut off economic trade going into and coming out of” the country.

Amid threats by US President Donald Trump, the Iranian government has also tried to empower its own border provinces to import essential goods by reducing red tape. It has also allocated $1bn from the sovereign wealth fund to buy food, and made a partial policy U-turn to restart offering a preferential subsidised exchange rate with the goal of reducing prices, despite concerns about corruption.

Non-oil trade takes hit

According to customs data released by state media, Iran’s non-oil trade has been negatively affected after commercial ties were disrupted or cut off as a result of the war, and critical infrastructure was bombed.

Iran’s customs authority put the total value of non-oil trade in the Iranian calendar year that ended on March 20 at close to $110bn, with $58bn going to imports. The figure was about 16 percent lower than the year before.

The volume of non-oil trade was valued at approximately $9bn for the 11th month of the calendar year ending on February 19, and $6.46bn in the final month, indicating a drop of about 29 percent in connection with the war, which started on February 28. The final month was also about 50 percent lower than the more than $13bn estimated value for last year’s corresponding month.

Part of the drop is linked with the fact that shipping has been significantly disrupted through the Strait of Hormuz as Iran and the US spar over control of the strategic waterway. The US and Israel also directed some of their thousands of strikes against ports, naval facilities, airports, and railway networks across the country.

Iran’s top steel and petrochemical producers were also extensively bombed, as were oil and gas facilities, power stations, and major industrial zones. The US and Israel have threatened to take Iran “back to the Stone Age” through systematic bombing of civilian infrastructure like power plants.

To manage the impact and preserve domestic supply, Iranian authorities have imposed temporary restrictions on exports of steel, petrochemicals, polymers and other chemicals.

Oil exports in the crosshairs

The US is using its military capabilities and economic chokeholds to drive down Iran’s oil exports, a goal that it has also pursued over recent years through sanctions.

Since mid-April, the US military has been deploying its soldiers to take over or inspect ships transiting through waterways near Iran, in addition to targeting what is known as a shadow fleet of tankers used by Iran to circumvent sanctions and ship its oil.

Warships and thousands of troops could still launch a ground invasion or destructive aerial attacks against Iran’s Kharg and other critical islands, and the Trump administration expects increased pressure on Iran’s oil sector due to hampered access to export routes and supertankers keeping the oil stored on the water.

The US Treasury has been blacklisting refineries in China, the biggest buyers of Iranian crude oil, and going after the banking and cryptocurrency channels alleged to be facilitating Tehran’s oil trade, and having links to the IRGC – which Washington considers a “terrorist” organisation.

“We will follow the money that Tehran is desperately attempting to move outside of the country and target all financial lifelines tied to the regime,” said US Treasury Secretary Scott Bessent on social media.

Chinese refineries buy roughly 90 percent of Iran’s oil shipments, and imported a record 1.8 million barrels per day ⁠in March, according to Vortexa Analytics data cited by the Reuters news agency, which also said purchases were expected to slow due to worsening domestic refining and processing margins.

According to figures released by the General Administration of Customs of China, the volume of the country’s bilateral trade with Iran during the first quarter of 2026 stood at $1.55bn, down 50 percent year-on-year.

In March, the first month of the war, trade stood at $184m, which was nearly 80 percent lower than the year before and 64 percent lower than the month before. China’s imports from Iran and exports to the country were both considerably reduced as a result of the war.

The removal of the United Arab Emirates as a major trade partner and import market for Iran has also significantly affected the country’s economy, increasing its reliance on land neighbours like Turkiye and Iraq to the west and Pakistan to the east.

The UAE, a big part of the Trump-led Abraham Accords that saw multiple countries normalise relations with Israel, was heavily targeted by ballistic missiles and drones launched by Iran.

The UAE has closed down numerous Iranian institutions on its soil over the past two months, including financial facilitators, instructed Iranian citizens to leave, and has said it will take years to restore bilateral relations to previous levels.

Mukalla, Yemen – The Yemeni government’s measures to curb the devaluation of the Yemeni riyal have finally borne fruit, but they have created another problem: A severe liquidity crunch.

The government’s central bank, based in the southern city of Aden, has shut down unauthorised exchange firms it says were involved in currency speculation, centralised internal remittances under a controlled system, and formed a committee to oversee imports and provide traders with hard currency.

These measures have helped curb the riyal’s freefall, from about 2,900 to the United States dollar months ago to about 1,500 today, a move that was initially welcomed. But the gains have been short-lived, as public frustration has grown over a worsening shortage of cash in riyals.

People across government-controlled cities such as Aden, Taiz, Mukalla and others have said they are facing an unprecedented shortage of Yemeni riyals in the market. Many, particularly those holding US dollars or Saudi riyals, said local banks and exchange firms are refusing to convert foreign currency, or are limiting daily exchanges to as little as 50 Saudi riyals per person, citing a shortage of local cash.

This has left many Yemenis unable to access cash or use their savings in hard currency at a time of mounting economic pressure, paralysing businesses and giving rise to a black market where traders exchange foreign currency at more unfavourable rates to the customer.

Businesses grind to a halt

Mohammed Omer, who runs a small grocery shop in Mukalla, said he has spent hours crisscrossing the city’s exchange firms trying to convert a few hundred Saudi riyals he received from customers. “I’ve gone from one exchange to another, and they refuse to exchange more than 50 riyals,” said Omer, a man in his early 50s with a salt-and-pepper goatee. “It’s a waste of time and effort – I’ve had to close my shop.”

Yemen has endured an economic meltdown for more than a decade, stemming from a war between the Saudi-backed government and the Iran-aligned Houthis that has killed thousands and displaced millions.

Alongside the fighting on the battlefield, the warring sides have targeted each other’s main sources of revenue, leaving both the Houthis and the government strapped for cash, struggling to pay public-sector salaries and fund basic services in areas under their control.

At a board meeting in March, the Central Bank in Aden said it was aware of the cash shortage and had approved several unspecified “short- and long-term” measures to address the problem, noting that it is pursuing “conservative precautionary policies” to stabilise the riyal and curb inflationary pressures.

Government employees have also complained that the cash-strapped Yemeni government is paying salaries in low-denomination banknotes – mainly 100 riyals – forcing them to carry their wages in bags.

Munif Ali, a government employee in Lahj, took to Facebook to express his frustration, posting a video of himself sitting beside large, tightly packed bundles of 100- and 200-riyal notes that he said he received from the central bank. Munif, like many Yemenis on social media, said traders are refusing to accept large quantities of low-value notes. “Merchants are refusing to recognise this,” Munif said, referring to the stacks of 100- and 200-riyal notes in front of him. “Legal action should be taken against them.”

People who have kept their savings in Saudi riyals, the de facto currency in parts of Yemen, as well as Yemeni expatriates who send remittances in hard currency to their families, and soldiers paid in Saudi riyals, are among those most affected by the cash shortage.

Finding workarounds

To cope with cash shortages and the refusal of exchange firms to convert hard currency, Yemenis have adopted a range of workarounds. Some rely on trusted shopkeepers who allow delayed payments, while others exchange foreign currency at local groceries or supermarkets, often at lower, unfavourable rates. Banks and exchange firms have also introduced online money transfers, which have helped ease the crisis for some.

In rural areas, where internet access is limited and exchange shops are scarce, the problem is even more acute.

Saleh Omer, a resident of the Dawan district in Hadramout, told Al Jazeera that he received a remittance of 1,300 Saudi riyals sent from Saudi Arabia. But the exchange firm that handed him the money refused to convert it into Yemeni riyals, citing a lack of cash, and advised him to try nearby shops.

With the official exchange rate at about 410 riyals to the Saudi riyal, a shopkeeper agreed – after repeated appeals – to exchange only 500 riyals, and at a lower rate of 400. “I nearly begged the shopkeeper to exchange 500 riyals,” Saleh said. To convert the remaining 800 riyals, he added, he would have to return another day and go from one shop to another. “We are suffering greatly just to convert Saudi riyals into Yemeni riyals.”

Connections matter

Well-connected individuals are often better positioned than others to navigate the cash shortage, with some relying on personal contacts at banks and exchange firms to access cash. Khaled Omer, who runs a travel agency in Mukalla, said most of his business transactions are conducted in Saudi riyals or US dollars. But when he needs Yemeni riyals to pay employees or cover utilities, he turns to a trusted contact at a local exchange firm. “We work with a money exchange trader when we need riyals to pay salaries or meet basic expenses,” Khaled told Al Jazeera. “Exchange companies say they are facing a liquidity crunch.”

On social media, Yemenis say some patients have been denied medication as health facilities refuse to accept payment in Saudi riyals, while exchange firms decline to convert the currency into Yemeni riyals.

In Taiz, Hesham al-Samaan said a local hospital refused to accept Saudi riyals from a relative of a patient, forcing him to roam the city in search of someone to exchange the money to pay for treatment. “Is there any justice for the people, oh government? Will anyone hold accountable those who refuse to exchange currency and exploit people’s needs?” al-Samaan wrote in a Facebook post that drew dozens of comments from others reporting similar experiences, including being denied medical services because they did not have local currency.

For traders who import goods from Saudi Arabia, the cash crisis has become something of a blessing in disguise, as Saudi riyals are increasingly available at discounted rates. A clothing trader in Mukalla told Al Jazeera that he accepts payments in both Yemeni riyals and Saudi riyals, partly to attract customers and partly to secure the foreign currency he needs for his business. “As a businessman who sells goods in Yemeni riyals, I benefit from the cash shortage,” he said on condition of anonymity. “Exchange companies that need local currency I hold sell me Saudi riyals at lower rates.”

March 31 (Asia Today) — South Korea’s ruling and opposition parties agreed Tuesday to pass a package of economic measures, including a currency stabilization bill, as the won weakened sharply amid prolonged conflict in the Middle East.

The legislation was approved during a plenary session alongside more than 60 bills aimed at stabilizing the economy and supporting livelihoods.

The currency measure includes tax incentives designed to encourage domestic investment by individuals who have invested in overseas markets, often referred to in South Korea as retail investors in foreign stocks. Officials said the goal is to increase demand for the Korean won and reduce volatility in foreign exchange markets.

The won traded at 1,530.1 per U.S. dollar on Tuesday, well above the psychologically significant 1,500 level, adding to inflationary pressure.

Floor leader Han Byung-do said the worsening Middle East crisis had begun to affect everyday life, emphasizing the need to contain exchange rate volatility and shield the economy from external shocks.

Lawmakers also approved additional economic legislation tied to the crisis. These include a measure to support corporate restructuring, allowing companies to streamline mergers and spin-offs and receive tax benefits as they respond to industrial challenges and shift into new sectors.

Other bills passed include revisions to trade-related laws aimed at helping businesses adapt to changes in the global trade environment.

Separately, lawmakers voted to fill several vacant leadership posts in National Assembly committees. The Democratic Party nominated Rep. Seo Young-kyo as chair of the Legislation and Judiciary Committee, along with Rep. Kwon Chil-seung and Rep. So Byung-hoon for other committee leadership roles. Their terms will run through May.

The votes were conducted by secret ballot and passed with support from the Democratic Party, while the People Power Party is believed to have opposed the selections.

The People Power Party had argued that the judiciary committee chair should be held by the opposition to ensure checks and balances, noting that the Democratic Party already holds the position of National Assembly speaker.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260401010009707

WASHINGTON — The U.S. Treasury Department is working on plans to put President Trump’s signature on all new U.S. paper currency, the agency announced Thursday.

The move would be a first for a sitting president. The news was first reported by Vanity Fair.

It’s the latest instance of Trump putting his name and likeness on American cultural institutions, following his renaming of the U.S. Institute of Peace, the Kennedy Center performing arts venue and a new class of battleships, among other tributes.

The plans come in tandem with an effort to get Trump’s face on a coin.

This month, a federal arts commission approved the final design for a 24-karat gold commemorative coin bearing Trump’s image to help celebrate America’s 250th birthday on July 4.

Treasury Secretary Scott Bessent’s signature would also appear on the currency, according to a Treasury news release.

Bessent said in a statement that “there is no more powerful way to recognize the historic achievements of our great country” than with U.S. dollar bills bearing Trump’s name.

U.S. Treasurer Brandon Beach said in a statement that printing Trump’s signature on the American currency “is not only appropriate, but also well deserved.”

The Mint, which is part of the Treasury Department, manufactures and distributes the currency.

Hussein writes for the Associated Press.

March 16 (Asia Today) — This commentary is the Asia Today Editor’s Op-Ed.

International oil prices and South Korea’s currency are rising sharply again as the Middle East conflict intensifies, raising growing concerns that the country could slide into stagflation.

On March 13, global crude prices climbed back above $100 per barrel, while the Korean won weakened beyond 1,500 per U.S. dollar in overnight trading. The simultaneous surge in energy prices and the exchange rate has heightened fears that South Korea could face a worst-case scenario in which economic growth slows while inflation accelerates.

Such developments threaten to derail the government’s economic targets for the year – about 2% growth and inflation in the 2% range – making emergency policy responses increasingly urgent.

Brent crude futures for May delivery closed at $103.14 per barrel, up 2.7% from the previous day. It was the first time Brent crude exceeded $100 since August 2022.

U.S. West Texas Intermediate (WTI) crude futures settled at $98.71 per barrel, approaching the $100 threshold. Meanwhile, Dubai crude, the benchmark most relevant to South Korea’s imports, surged to $123.50 per barrel, up $34.60 from the previous week.

As oil prices surged, investors turned toward the U.S. dollar as a safe-haven asset. The won-dollar exchange rate closed at 1,497.5 won per dollar in overnight trading, up 16.3 won from the regular daytime session. During trading, the rate briefly rose to 1,500.9 won, crossing the psychologically important 1,500 level for the first time in seven trading days.

The twin surge in oil prices and the exchange rate has been driven largely by escalating tensions in the Middle East.

Iran has openly threatened to block the Strait of Hormuz, a critical chokepoint through which about 20% of the world’s crude oil supply passes. Iran’s new supreme leader, Mojtaba Khamenei, declared a prolonged confrontation in his first official statement on March 12, saying Tehran should continue using the possibility of a Hormuz blockade as leverage against the United States and Israel.

Oil prices, which had briefly stabilized after U.S. President Donald Trump suggested the conflict might end soon, surged again following the statement.

Tensions escalated further after the United States launched airstrikes on Kharg Island, Iran’s largest oil export hub, on March 13. Iran retaliated by attacking the Fujairah port in the United Arab Emirates, a key oil-export route that bypasses the Strait of Hormuz, putting global energy supply chains on alert.

Trump has also urged five countries – including South Korea, China and Japan – to dispatch naval vessels to the Strait of Hormuz, pushing regional military tensions to a new peak.

Economic analysts warn the shock could have serious consequences for South Korea’s economy.

The Korea Development Institute (KDI) warned last week that rising oil prices linked to the Middle East conflict would increase inflationary pressure while weakening economic growth.

The Hyundai Research Institute estimated that if oil prices climb to $150 per barrel, South Korea’s economic growth rate could fall by 0.8 percentage points.

The government is considering a supplementary budget of 10 trillion to 20 trillion won ($7.5 billion to $15 billion) and temporary fuel tax cuts. However, these measures would only offer short-term relief.

A more fundamental solution lies in reducing South Korea’s heavy reliance on Middle Eastern crude oil, which accounted for 69% of total imports last year. Diversifying energy sources by expanding imports from countries such as Brazil and Norway should be pursued urgently.

The government must mobilize every available policy tool – including measures to stimulate domestic demand – to prevent what could become the fourth Middle East-driven oil shock from pushing the economy into stagflation.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260315010004332