New Historic Collapse of the Iranian Currency

The Iranian rial recorded its lowest level ever against the US dollar today, with the exchange rate surpassing 240,000 tomans in the free market (2.4 million rials), amid continued price hikes and turmoil in the foreign exchange market. According to data from Bonbast, a website specializing in tracking exchange rates, the dollar was trading at around 2.45 million rials in Tehran’s unofficial market, while the official rate at the Central Bank hovered around 1.5 million rials per dollar. Many Iranians rely on the unofficial market rate to obtain US dollars. The rial’s decline comes amid ongoing economic pressures and US sanctions, coinciding with uncertainty over the trajectory of talks between Tehran and Washington. The losses are not confined to currency exchange shops; the rial’s depreciation is driving up prices for food, medicine, animal feed, spare parts, and raw materials, even when some goods benefit from subsidized exchange rates. Short videos posted on Instagram in recent days have highlighted the true scale of the Iranian currency’s collapse. One clip showed that the nominal value of a paper tissue now exceeds that of a 1,000-toman banknote, a symbolic scene reflecting the severe erosion of the local currency’s purchasing power. Another video showed a massive pile of Iranian banknotes and checks worth only about $100, equivalent to more than 24 million tomans, illustrating the growing gap between the local currency and foreign currencies, according to Iranwire. US Treasury Secretary Scott Bessent predicted that Iran would complete its remaining oil shipments to China within two weeks, leaving Tehran “with nothing to trade for anything else.” Speaking on Fox News on Sunday, Bessent said that only about 15 million barrels of Iranian oil remain en route for delivery, following the imposition of a US blockade on Iranian ports. He viewed the declining shipments as evidence that the “economic pariah” strategy has successfully isolated Tehran economically. The Treasury Secretary noted that Iran is “feeling the pressure,” which has prompted it to renew its interest in reaching an agreement.