The value of Iran’s rial has plunged to its lowest level against the U.S. dollar, with the exchange rate in the open market reported between 137,000 and 140,000 rials per dollar. This historic drop is significant compared to the beginning of 2025.
Experts attribute this decline to a combination of international sanctions, falling oil revenues, high inflation, and political and economic fluctuations, which have driven up demand for the dollar and other safe-haven assets. The devaluation of the rial has led to a noticeable increase in the prices of everyday goods and services, putting considerable pressure on Iranian households.
Public response to the severe currency crisis has been intense, with protests emerging in some cities. Meanwhile, the Governor of the Central Bank of Iran has resigned, and a new official has been appointed to manage the crisis. However, analysts warn that addressing the underlying economic issues will require broad reforms and smart management of monetary policies.
The roots of this decline trace back to 2018, following the U.S. withdrawal from the JCPOA and the imposition of sanctions, which triggered a downward trend in the rial’s value that has intensified in recent years.
