The Value of Iran’s Currency Fell to a Record low, 613,500 Rials per 1 USD

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The Value Iran Record Low
The Value Iran Record Low

The value of Iran’s currency fell to a record low on Sunday (24/3), namely 613,500 rials per US dollar, as the Persian New Year was celebrated. In fact, on Monday, March 18, or the last working day before the holiday, 1 American dollar was equivalent to 590,000 rials.

Iranians on Sunday tried to exchange rials for foreign currency at the main center of currency exchange shops on Ferdowsi Street, but most of the shops were closed due to the Nowruz holiday, which runs from March 20 to April 2.

Mohsen, a 32-year-old employee at one of the foreign exchange shops, said the holiday contributed to the low exchange rate because “prices are not real, demand to buy dollars is very high, but there are only a few exchange shops open.” He and other Iranians spoke on condition their last names not be used, because of the potential repercussions of speaking to foreign media about the country’s economic woes.

The two-week holiday is an opportunity to travel abroad, boosting demand for American dollars and Euros.

Mojtaba, a 49-year-old father, was shocked that “the value of the rial fell by 5% compared to the last six days, while the whole country is on holiday!”

Meanwhile, Niloufar, a 28-year-old woman and her husband Behzad, 30, said they had booked a week-long tour of Turkey at a discount, but now they had to be prepared to spend up to the full price of the tour.

Exchange rates greatly influence other markets, including housing and rentals.

Since the US left the Iran Nuclear Agreement, the value of the rial has continued to fall

Many Iranians have seen their savings evaporate due to the depreciation in the value of the local currency. Today, it is worth about 5% of what the currency was worth in 2015, when Iran signed a nuclear deal with the major powers.

Since then the value of the rial has plummeted from 32,000 rials per US dollar to hundreds of thousands. In February 2023, The Value Iran Record Low the currency reached a low of 600,000 rials to the dollar, and since then has never risen above 439,000.

The government’s Statistics Center said Iran’s inflation rate in February 2024 reached 42.5%. However, Iran’s Central Bank says the inflation rate is more than 46%. There is no explanation for the difference.

Biden Willing to Restore Nuclear Treaty, But Early 2022 Talks Have Stalled

Iran’s relations with the West are at their lowest point since US President Donald Trump abandoned a deal that called for the country to end its nuclear program in exchange for access to frozen funds and other benefits.

President Joe Biden said he was willing to restore the nuclear deal with Iran, but formal talks to try to find a roadmap to restart the deal broke down in August 2022.

Meanwhile, tensions in the Middle East have increased significantly and made nuclear diplomacy with Iran increasingly complicated. Iran has further angered Western countries by supplying Russia with armed drones that have been used in its invasion of Ukraine.

The Value Iran Record Low came less than a month after parliamentary elections that recorded the lowest voter turnout since the 1979 Islamic Revolution, with the results dominated by hardline politicians. Hardline groups have controlled parliament for the past two decades.