Skip to main content

Will the value of the Iranian Rial collapse?

The picture illustrates euro and United States 100-dollar banknotes bearing the portrait of US statesman, inventor and diplomat Benjamin Franklin next to Iran's rial banknotes, bearing a portrait of Iran's late founder of Islamic Republic Ayatollah Ruhollah Khomeini in Tehran on September 30, 2012. Iran's currency, the rial, dived to a new low of around 29,600 to the dollar in open trading, losing over 60 percent of its value since the end of last year according to exchange tracking websites as draconian We
To:

Al-Monitor Readers

From:

Dr. Bijan Khajehpour

Managing Partner, Eurasian Nexus Partners, Vienna, Austria

Date:

Feb. 25, 2024

Bottom Line:

Iran’s national currency has been under pressure due to a multi-tiered exchange rate system that has failed its objective of reducing inflationary pressures on the lower income classes. The continued devaluation of the Rial is not only undermining the purchasing power of the average family but also distorting business realities and opening up paths for rent-seeking and corrupt dealings.