Iran's Rial Plummets as Protests and Economic Turmoil Persist

Iran's currency, the rial, has reached a historic low against the U.S. dollar amidst ongoing economic struggles and nationwide protests. The unrest, fueled by the deteriorating economic situation and demands for political change, has led to significant policy changes including subsidy reforms. Security challenges persist, with a high death toll reported.

Iran's currency hit an unprecedented low, trading at 1,500,000 rials per U.S. dollar, as reported by Iranian currency tracking websites. The steep drop comes on the heels of widespread protests over the rial's diminishing value.

Central Bank Governor Abdolnaser Hemmati suggested the forex market was naturally adjusting, despite the rial losing 5% of its value this month. The initial protests, which erupted over economic stress at Tehran's Grand Bazaar, evolved into broader demands for political reforms, challenging Iran's clerical regime.

In response to inflation and economic instability, the government launched subsidy reforms to replace preferential currency exchanges for importers with direct cash transfers to residents. Despite these efforts, inflation climbed sharply, with year-on-year rates hitting 60%. In a parallel struggle, Iran faces an ongoing internet blackout, citing security concerns amid rising death tolls linked to the unrest.

(With inputs from agencies.)