Iranian Rial plunges to lowest level in history

The Iranian Rial hit its lowest level in history Monday, according to media reports.

According to a foreign news agency, citing Iranian media, the rial was recorded trading at around 1,250,000 per US dollar in the open market.

In 2018, when the Trump administration imposed strict sanctions on Iran, one US dollar was worth about 55,000 rials.

Since then, the currency has been in continuous decline.

Iranian media report that the government’s recent economic liberalisation policies have increased pressure on the open market, where ordinary citizens buy foreign currency for daily needs, while most businesses rely on government-set exchange rates.

According to Iran’s semi-official Fars News Agency, the government’s decision to allow importers to purchase dollars from the open market for essential goods has further boosted demand, causing the dollar rate to surge rapidly.

The World Bank has forecast that Iran’s economy may contract by 1.7% in 2025 and 2.8% in 2026, raising the risk of recession. Meanwhile, inflation continues to rise.