As US sanctions loom, Iran's rial hits record low of 112,000 to a dollar

The government-set exchange rate was 44,070 to the dollar, compared to 35,186 on January 1

Iran's currency is continuing its downward spiral as increased American sanctions loom, hitting a new low on the thriving black market exchange.

The Iranian rial fell to 112,000 to the dollar on Sunday, from 98,000 to USD 1 on Saturday.

The government-set exchange rate was 44,070 to the dollar, compared to 35,186 on Jan 1.

The Iranian rial has been declining steadily for years but the drop has accelerated in recent months after the US decision to pull out of the nuclear deal with Iran in May and announcement of increased sanctions beginning next month.

The government last week replaced the country's central bank governor Valiollah Seif, whose policies have also been blamed for the rial's fall, and eased regulations on bringing foreign currencies into the country to combat black market trading.