Iran currency slide sets fresh records as dollar passes 1.28m rials
Foreign exchange prices in Iran surged to new records, sending the rial to fresh lows and pushing gold higher as demand for hard assets intensified on Saturday.
Foreign exchange prices in Iran surged to new records, sending the rial to fresh lows and pushing gold higher as demand for hard assets intensified on Saturday.
The US dollar traded above 1,280,000 rials, the euro crossed 1,500,000 rials and the British pound climbed past 1,700,000 rials in Iran’s open market, extending a sustained upward trend.
Gold prices followed the currency rally, with the new-design coin rising beyond 1,380,000,000 rials, reflecting the weaker rial and continued investor demand for inflation hedges.
Inflation and foreign-exchange volatility have intensified since the return of UN sanctions in September and Tehran’s insistence on maintaining its nuclear enrichment program in defiance of the international community's demands.
Britain, France and Germany triggered the so-called snapback mechanism to restore UN sanction under Security Council Resolution 2231, citing Iran's failure to comply with its nuclear obligations.
The move restored UN penalties previously suspended under the resolution, tightening external constraints on Iran’s economy. Tehran denies seeking a nuclear weapon and accuses the United States and European countries of economic warfare.
Over the past year, food prices have risen more than 66 percent on average, squeezing households and straining purchasing power.
Market participants linked the renewed spike to persistent uncertainty over economic management, limited foreign currency supply and expectations of further depreciation.
The repeated record-setting levels have sharpened concerns over purchasing power, as higher exchange rates feed directly into import costs and domestic prices across the economy.
