The Iranian rial has reached a record low against the US dollar, signaling ongoing economic challenges in the country.
Situation of the Iranian Rial
On Saturday, the Iranian rial hit over one million rials for a dollar as people returned to work after the Nowruz holiday. During this time, the exchange rate dropped to a record level, with only informal traders active on the streets. Contrary to expectations of recovery, the rate dropped further to 1,043,000 rials per dollar. Due to uncertainty, some traders turned off electronic displays of rates on Ferdowsi Street in Tehran.
Tensions with the US
International sanctions have significantly impacted Iran's economy, particularly after former U.S. President Donald Trump withdrew from the nuclear deal with Tehran in 2018. He continued to apply pressure with new sanctions against companies trading Iranian oil. The tense relations between Tehran and Washington have contributed to the further decline of the rial, along with political unrest within Iran, including issues related to the hijab mandate.
Iran and Cryptocurrencies: Attempts at Adaptation
In the face of economic turmoil, Iranians have sought ways to preserve their savings, turning to hard currencies, gold, and cryptocurrencies. However, the Iranian government has intensified its crackdown on cryptocurrencies, halting all rial payments on platforms. This decision has not succeeded in halting the decline of the national currency. Nevertheless, the cryptocurrency market continues to grow and attract interest from young Iranians in a context of international sanctions and domestic economic instability.
The worsening economic situation in Iran and ongoing external pressures from the US contribute to the continued decline of the rial. In such challenges, the population is forced to seek alternative means of safeguarding their assets, with cryptocurrencies increasingly coming to the forefront.
