Iran’s Currency Reaches New Low of 1,040,000 Rials to US Dollar

Iran’s currency hit a record low of 1,040,000 rials to the US dollar on Tuesday.

The rial has lost 50 per cent of its value since President Masoud Pezeshkian took office in August 2024.

The currency’s decline accelerated following Israel’s military campaign against Hezbollah in Lebanon in September last year, which undermined Tehran’s regional position.

Donald Trump’s election victory has created additional uncertainty due to his harder stance on Iran.

Iran’s economy remains under severe strain from international sanctions related to its nuclear program, with pressures intensifying following the U.S. withdrawal from the nuclear accord in 2018 under Trump’s administration.

The Iranian government has yet to publicly address the sharp decline of the rial.

Meanwhile, currency devaluation, rising inflation, and the risk of trade imbalances threaten to worsen the Iranian people’s economic hardships.