The value of the Iranian Rial, which had already fallen in value by about half against foreign currencies since last year, has depreciated even more rapidly lately. The situation is exacerbated by the presence of a growing speculation market. Iranians increasingly demand U.S. dollars because sanctions have obstructed the transfer of money to foreign banks.
The efficacy of sanctions is a contentious subject in general, and there is much debate as to whether the current sanctions will be enough to change the Iranian regime’s tune regarding its nuclear program. Many think that a state as ideological as Iran will manage to convince its citizens to withstand the hardship. Some insist that the sanctions are causing Iranians to blame the West, rather than their own government, for economic hardship.
Others argue that the Iranian regime is resilient enough to not buckle under Western sanctions and that the government is unlikely to back down in the face of domestic pressure.
For More: Would Further Economic Sanctions Against Iran Ever Stop Its Nuclear Weapons Development?