However, currency markets remained overall stable in 2020 which also reflects the global scale of the pandemic given that bilateral dollar exchange rates mirror information about two economies. An increase in confirmed COVID-19 cases also significantly raises exchange rate volatility which initially increased in 2020 ( Feng et al., 2021). Gräb et al. (2021) show that positive information about vaccine news increases the price of assets which experienced a drop in prices and has a positive net effect on financial conditions. Stock markets recovered quickly from an initial sharp drop and currency markets have also shown some distinctive patterns. However, in 2018, The United States of America imposed and sharpened their sanctions again.The response of financial markets to the COVID-19 pandemic has attracted great interest among researchers. The United States of America and the European Union, in 2016, lifted a few sanctions leading to an improvement of ‘Iran’s economic situation and stabilization of the Rial. This again created a crucial deficit in ‘Iran’s national budget.Īll of these events led to the dropping of the Iranian Rial as the lowest valued currency. Iran was a major oil exporter, the country was also deprived of opportunities to export its oil. Due to this, measures such as restriction of ‘Iran’s access to the ‘world’s market were implemented, which ultimately caused significant losses to its economy. Several reasons led to the decline of Iranian Rial the war between Iran and Iraq, the threats faced by Israel, and the dangers of possible nuclear warfare. For the simplification of calculations, Iranians regularly use the term ‘Toman’. The Iranian Rial is the least valued currency in the world.
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