Iran’s national currency has plummeted further as the economic crisis continues, with the exchange rate hitting 950,000 rials per US dollar on Saturday, dropping 14% since last month and 86% year on year.
Speaking to state-run ISNA, economic expert Vahid Shaghaghi pointed to the influence of the US which has, under President Donald Trump's second term, renewed its 'maximum pressure' policy on Iran.
“The maximum pressure policy has resumed, and the US has gained additional experience from the previous campaign under Trump. The puzzle of sanctions is being completed, and in Trump’s new executive order, non-oil exports are also targeted,” he said.
Shaghaghi called for a coordinated response, urging the government and institutions to form a national and governmental consensus to counter the impact of such measures. “In an economic war, issues should not be perceived simplistically,” he added.
The rial’s steep decline has fueled inflation expectations, which have risen sharply since late December, when the dollar was still around 760,000 rials. Market concerns have intensified following Supreme Leader Ali Khamenei’s recent speech rejecting negotiations with the United States.
With the Iranian New Year (March 20) approaching, demand for imported goods—requiring foreign currency—is likely to push rates even higher. The price of gold has surged alongside the dollar, as Iranians seek refuge in hard assets.
For millions of Iranians, the continued currency collapse has eroded purchasing power.
Over the past five years, wages have failed to keep pace with surging costs, with the average worker’s monthly income now equivalent to just $125—far below the estimated $500 needed to cover basic living expenses, forcing at least one third of the nation below the poverty line.
In the reports, people highlight the increasing pressure on their livelihoods, complaining about the lack of response to their protests and the absence of effective measures to control prices.
One viewer, sharing a video, said that they had purchased only a few kilograms of potatoes, onions, and tomatoes, and the cost of these three items had reached 7,000,000 rials, approximately one-seventeenth of the average monthly Iranian salary.
The simultaneous surge in prices and worsening economic hardship, along with leaked reports of the Islamic Republic's financial aid to its supporters in Lebanon, has drawn significant attention from Iranian citizens.
One Iran International viewer, referring to the high food prices, said in a video: "The Iranian government gives money to the Lebanese, but does not care about its own people."
On Tuesday, Ali Khamenei, the Supreme Leader of the Islamic Republic, met in Tehran with leaders of Palestinian Islamic Jihad, who visited Tehran seeking financial assistance. Meanwhile, Hezbollah in Lebanon has been opening new branches of interest-free loan funds to distribute financial aid from the Islamic Republic.
Tehran has recently allocated more than $10,000 to each war-affected family in Lebanon to help cover rent and household expenses. This aid is distributed among Shiite Lebanese who are supporters of Hezbollah.
Naim Qassem, the newly appointed Secretary-General of Hezbollah, described the funds as a "gift from the Islamic Republic."
Inflation in Iran has reached an uncontrollable level, with the Iranian Statistics Center announcing that the country’s annual inflation rate for the 12 months leading up to February 2025 stands at 32%.
The Iranian currency, rial, has depreciated by more than 50% since September fueling annual inflation, which has hovered around 40% in the past five years.
Citizens hold the Islamic Republic and its policies responsible for their economic hardship and the rising cost of food and medicine.
Even Islamic Republic officials have acknowledged their inability to resolve the current crises.
President Masoud Pezeshkian referring to shortages in various sectors—including energy, which the government labels as imbalances—said:
"Do you think I have a magic box? No. Six months ago, I was walking in Parliament, and now I am the President."
Speaking at a meeting with officials in western Tehran on Thursday, Pezeshkian added:
"Everywhere we look, there is an imbalance—in water, electricity, gas, money, land, schools, and hospital beds. Demand is unlimited, and our capacity is limited."
Meanwhile, on Friday, Mohammad Jamalian, a member of Parliament’s Health Committee, said:
"Currently, 350 to 400 types of medicine are in short supply, and in the best-case scenario, such shortages will worsen within the next one to two months."
