Mehrad Ebad, a member of the Iranian Chamber of Commerce delegation, expressed concerns in an interview with ILNA news agency about the continuous surge in the price of currency in the Iranian market, resulting in a devaluation of the national currency. He remarked, “Nowhere else does a national currency depreciate by 20 percent overnight.”
Economic stability is paramount for a healthy and progressive economy, enabling investments without barriers or losses. Unfortunately, such stability remains elusive in Iran, deterring both domestic and foreign investors.
State media frequently highlight the government and Central Bank’s disregard for the free market currency rate. Urgent calls are made for a unified currency rate and its acceptance in the free market.
Presently, the dollar’s rate in Iran’s free market hovers around 55,300 tomans. Economic analysts predict further increases, with demand outstripping supply.
Under the leadership of Ebrahim Raisi, the current government has struggled to control currency rates, exacerbating the plight of a populace already grappling with rampant inflation, particularly those near or below the poverty line.
Iranian producers and merchants have repeatedly faced abrupt fluctuations of 10% to 20% in exchange rates over the past decade. A single-rate currency system could mitigate rent-seeking and corruption induced by such fluctuations, safeguarding the majority from losses.
Many importers, primarily affiliated with Iran’s Revolutionary Guards (IRGC), exploit their control over goods prices, aligning them with free market currency rates. Conversely, fewer adjust prices based on the Nima currency, introduced by the Central Bank to streamline foreign exchange transactions.
Disruptions and widening gaps between free market and state currency rates have necessitated the adoption of Nima currency to better manage the currency market. However, treating currency as a tradable commodity poses significant risks to Iran’s economy.
As the dollar’s rate continues its ascent, regime authorities and state-run media deflect responsibility by attributing blame to external forces. For instance, Sepehr Khalji, head of the regime’s information council, alleges, “The enemy seeks to destabilize the economy and exert pressure on the populace.” Similarly, Kayhan newspaper, the official mouthpiece of Supreme Leader Ali Khamenei, claims that external telegram channels influence the dollar’s price.
