Iran Economy NewsIran's Foreign Exchange Market in Chaos

Iran’s Foreign Exchange Market in Chaos


Iran Focus

London, 18 Apr – Chaos is still rampant in Iran’s foreign exchange market a week after the Iranian Government artificially set the currency exchange rate at 42,000 rials to the US dollar.

This move, which Paris-based economist Fereidoun Khavand described as “a very dangerous game”, was an attempt by the Hassan Rouhani administration to control the incredible devaluing of the rial. The rial hit an all-time high of 61,000 rials to the dollar on April 10.

Some street exchange bureaus flouted the laws by selling dollars for 53,000-55,000 rials, but a few of them have been arrested and threatened with the death penalty. Other offices have closed down altogether.

This has put extra pressure on traders in Iran, who have had problems with foreign currency transactions that have nearly bankrupted them, according to Mohamad Farahani, the chairman of the Foodstuff Importers Union.

It has also heavily affected travellers who are unable to exchange more than 1,000 Euros worth of currency at a time – if they can get the money at all.


Of course, the Iranian Government is desperate to find a scapegoat for the economic crisis. This is easier than admitting that the rial has been steadily falling against the dollar since the mullahs took power in 1979.

They’ve blamed foreign companies for not investing in Iran and foreign countries for imposing sanctions on the Government, all so that they can avoid acknowledging the real problem: corruption in the Government.

Thus, on April 15, 63 MPs have demanded that Central Bank Governor Valiollah Seyf be fired for his role in the economic problems.

One day later, Seyf met at the government’s economic headquarters to insist that if the Central Bank’s policies were implemented, the exchange rate would only fluctuate 5-6% per year.

To be clear, the entire Government is responsible for this problem. They plough the country’s money into their own pockets or proxy wars, and then blame anyone else for the economic problems that they caused.

The Iranian people have clearly stated this during their nationwide anti-government protests earlier this year and they should be listened to.

They chanted that their leaders should forget about Gaza and Syria – where they are intervening to cause more sectarian violence – and focus on the people of Iran, a third of whom live in absolute poverty.

Khavand said: “The reasons behind the disruption of Iran’s exchange market are mainly the confrontational foreign policy of the Islamic Republic [and] uncertainty about the future of the Joint Comprehensive Plan of Action (JCPOA).”

This deal could be scrapped as soon as next month, meaning that people are less likely to invest in Iran. However, the money invested is going into the mullahs’ war chest, not programmes for the Iranian people and that is one reason behind the strive of the Iranian people for regime change.

Latest news

Ebrahim Raisi’s Lies About Iran’s Economy

In a recent TV interview, Iranian regime president Ebrahim Raisi presented economic statistics rejected by experts and the media...

To Stay in Power, Iran’s Regime Liquidates National Assets

For several decades, Iranian regime supreme leader Ali Khamenei has sold Iran's resources and wealth for the survival of...

Iran’s 2023 Budget Shrouded In Doubt

On January 22, the Majlis (parliament) approved the draft of the 2023 budget bill proposed by regime president Ebrahim...

Iran: People of Khoy Still Reeling From 5.9-Magnitude Earthquake

An earthquake with a magnitude of 5.9 struck northwest Iran on Saturday, killing at least three people and injuring...

Iran’s Unsolvable Air Pollution Problem

Air pollution will remain at dangerous levels and will increase for the next few days in most big cities,...

The World Must Acknowledge the Iranian People’s Right to Self-defense

Victor Hugo once said: “When dictatorship is a fact, revolution becomes a right.” Throughout history, this has been the...

Must read

Iran VP says Jewish law book to blame for drugs trade

AFP: The teachings of the Jewish book of law,...

Iran’s Failing Economy Could Spell the End for President Rouhani

Iran Focus London, 11 Apr - There has been...

You might also likeRELATED
Recommended to you