On the first day that markets reopened after the Nowruz (Persian New Year) holidays, the value of the Iranian rial continued its decline, reaching its lowest level against the U.S. dollar. Each dollar was priced at over 1,043,000 rials.
On Saturday, April 5, the value of the Iranian rial fell to its lowest level against the dollar. The exchange rate, which had already surpassed one million rials per dollar during the Nowruz holidays, reached 1,043,000 rials with the reopening of exchange shops.
According to the Associated Press, on Ferdowsi Street in Tehran — the country’s main currency trading hub — some currency exchange dealers have turned off their electronic boards, as they are uncertain about the constant fluctuations in exchange rates.
Foreign Pressure and Tensions with the United States
After Donald Trump withdrew from the Iran nuclear deal with world powers in 2018, Iranian regime’s economy came under severe international sanctions. At the time of the agreement — in which the regime significantly limited its uranium enrichment in exchange for sanctions relief — one U.S. dollar was equivalent to 32,000 rials.
But with Trump’s return to power, the “maximum pressure” campaign was restarted, and sanctions against Iran intensified. Trump also targeted companies involved in trading Iranian oil. He even wrote a letter to Ali Khamenei, the Supreme Leader of the Iranian regime, attempting to initiate direct talks between Tehran and Washington — although so far, Iran has only shown interest in indirect negotiations.
Economic Pressures and Public Discontent
According to the state-run newspaper Eghtesad Online, Mehdi Darabi, a market analyst, believes that recent foreign pressures have led to “expectations of reduced oil sales, higher inflation, and increased foreign exchange rates.”
Economic instability and the falling value of the rial have driven people to safeguard their assets by turning to foreign currencies, gold, cars, and other tangible assets. Many have also turned to cryptocurrencies or entered high-risk investment schemes.
Meanwhile, domestic political pressures continue, particularly around the issue of compulsory hijab. There are also rumors of a potential increase in the price of subsidized gasoline — a move that previously sparked nationwide protests in November 2019.
The collapse of the rial has added further pressure on Masoud Pezeshkian, the President of Iran’s regime. In March, when the exchange rate hit 930,000 rials per dollar, the Iranian regime’s Majlis (parliament) impeached Abdolnaser Hemmati, the Economy Minister, for the sharp devaluation of the currency and allegations of mismanagement.
Public dissatisfaction also prompted Pezeshkian to dismiss his deputy, Shahram Dabbiri, due to a lavish trip to Antarctica that drew heavy criticism. Explaining his decision, Pezeshkian said: “At a time when people are under severe economic pressure, luxury trips by officials are unjustifiable.”
On Saturday, April 5, Pezeshkian also stated that Iran seeks “equal dialogue” with the United States. He added: “If you want to negotiate, why are you threatening?” He continued: “Today, the United States is humiliating not only Iran but the world, and this behavior contradicts the call for negotiations.”
