On Sunday, December 29, the US dollar and gold coin prices continued their upward trend, reaching new record highs. At the same time, experts warned that the continuation of this trend and the unchecked rise in prices could lead to the collapse of Iran’s economy.
In the open market, the US dollar surpassed 820,000 rials. Similarly, the euro and the British pound broke new records, crossing 850,000 rials and 1,030,000 rials, respectively.
Gold coins also experienced a 1.5- to 2-percent surge.
The alarming rise in the value of the dollar and gold coins could lead to hyperinflation and the collapse of the country’s economy. The current state of the currency market will soon impact other essential consumer markets, and if this situation persists, inflation will rise again, further shrinking people’s purchasing power.
Jafar Qaderi, deputy chairman of the Economic Commission in Iran’s parliament, stated on December 26: “We should not expect the dollar’s price to decrease. It is quite natural to see an increase in the prices of essential goods and necessities.”
The rise in the value of the dollar and gold coins reflects deep-rooted structural issues in Iran’s economy. This vicious cycle of rising prices stems more from fundamental economic problems under the Iranian regime than from political developments. These include budget deficits, excessive money printing, declining oil revenues, corruption, inefficiency, and the misallocation of resources to the regime’s proxy terrorist groups.
A review of the currency and gold markets shows that the US dollar has increased by 63 percent over the past year and by over 35 percent since the beginning of Massoud Pezeshkian’s administration. Gold coins have risen in price by more than 107 percent in the last year.
