The exchange rate fell to over one million rials during the Persian New Year, a period when currency exchange offices were closed, contributing to additional pressure on the market due to continued informal trading.
With the resumption of activity in exchange offices today, the trend of rial depreciation persisted, with the exchange rate dropping to 1,043,000 rials, indicating that this new low may become permanent.
On Ferdowsi Street, the financial center of Tehran, some traders turned off electronic boards displaying exchange rates due to uncertainty over the potential further depreciation of the rial.
“We turned them off because we are unsure of the successive rate changes,” said Reza Sharif, who works at one of these exchange offices.
The Iranian economy has been severely impacted by international sanctions, especially after former U.S. President Donald Trump unilaterally withdrew the United States from the nuclear agreement with Iran in 2018.
Upon returning to the White House for a second term, Trump reinstated his “maximum pressure” campaign on Iran with sanctions targeting companies trading Iranian crude oil, including those selling at discounted prices to China.
