Iran's rial hits all-time low amid market strain
Iran’s currency fell to its lowest level in history on Monday, approaching 1,250,000 rials per U.S. dollar in the open rate market, News.Az reports, citing Reuters.
In 2018, when U.S. sanctions were reimposed under the Trump administration to limit Tehran’s oil exports and foreign currency access, the rial traded around 55,000 per dollar. Iranian media have attributed the recent depreciation to government economic liberalisation policies, which have put additional pressure on the open rate market.
The open rate market serves ordinary Iranians buying foreign currency, while businesses typically use state-regulated rates. However, the government’s recent move allowing importers to access the open market for essential goods has further pushed up the dollar price, according to semi-official Fars news agency.
Iran’s economy faces recession risks, with the World Bank projecting contractions of 1.7% in 2025 and 2.8% in 2026. Rising inflation compounds the challenge, with Iran’s Statistical Centre reporting monthly inflation of 48.6% in October — the highest in 40 months.
Despite these pressures, the government announced last month it would raise fuel prices in December under certain conditions, mainly affecting drivers consuming over 100 litres per month.
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