Iran’s Currency Hits Record Low vs. Dollar for 2nd Day (2025)
Iran’s currency has weakened to a record low against the U.S. dollar in unofficial trading for a second consecutive day, in a sign of growing domestic concern about U.S. economic sanctions on the country.
The Bonbast.com website, which tracks Iran’s unofficial exchange rates, showed a new low of 140,000 rials, or 14,000 tomans, to the dollar Tuesday. The rial later recovered slightly to 138,500 to the dollar. On Monday, Bonbast.com had displayed the rial at a record low of 128,000 to the dollar.
Other Iranian currency market tracking platforms also recorded the rial at the 140,000-to-the-dollar level Tuesday. They included the Tahlilgaran Twitter account, which has 55,000 followers.
Iran’s official exchange rate, set by the Central Bank, has stood at 42,000 to the dollar since April. Iranian authorities initially warned they would punish currency exchange houses trading in dollars above that rate. But, the Central Bank partially lifted its ban on unofficial exchange rates last month to try to ease panic buying of the U.S. currency.
Iranians’ demand for dollars has soared since President Donald Trump withdrew the United States from Iran’s 2015 nuclear deal with world powers in May and vowed to re-impose U.S. economic sanctions on the country. The move triggered fears that U.S. sanctions would reduce Iranian exports of oil and other goods, and make imports more expensive.
Washington reimposed a first set of economic sanctions on Iran last month and is scheduled to enact a second and tougher set of sanctions in November, in a bid to pressure Tehran to give up what the U.S. says is its nuclear weapons ambitions. Iran denies seeking nuclear weapons.
The Iranian rial is weak primarily because of the political instability of Iran. The country operates an authoritarian regime that is unpopular amongst many of its citizens. It also has been accused of supporting terrorism, which has resulted in strict economic sanctions on the country, which has decimated its economy.
The dollar peg was dropped in 1975. In 1979, Rls 70 equalled USD 1. The value of the rial declined precipitously after the Islamic Revolution because of capital flight from the country. Studies estimate that the flight of capital from Iran shortly before and after the revolution in the range of $30 to $40 billion.
Looking forward, we estimate it to trade at 42189.21 in 12 months time. The USDIRR spot exchange rate specifies how much one currency is currently worth in terms of the other.
Check the currency rates against all the world currencies here. The currency converter below is easy to use and the currency rates are updated frequently. This is very much needed given the extreme volatility in global currencies lately. Sending money abroad is as easy as ever.
What Is the Weakest Currency in the World? The weakest currency in the world is the Iranian rial (IRR). The USD to IRR operational rate of exchange is 371,992, meaning that one U.S. dollar equals 371,922 Iranian rials.
The Kuwaiti Dinar is renowned as the strongest currency in the world. Introduced in 1961, it has maintained a commanding presence due to Kuwait's substantial oil reserves, which account for a significant portion of its economic output.
Russia. In June 2021, Russia stated it will eliminate the dollar from its National Wealth Fund to reduce vulnerability to international sanctions just two weeks before Russia's president Vladimir Putin held his first summit meeting with U.S. leader Joe Biden.
Overall, we will continue to live in a strong US dollar world with a number of risk factors that should support the currency. Any erosion in the dollar's strong valuation will likely be gradual.
Iran Real Effective Exchange Rate (REER: 2005=100: Month Avg: Iran) was 860.8 in Jul 2024, compared with the number of 847.5 in the previous month. Iran Real Effective Exchange Rate data is updated monthly and averaged 860.8 from Jan 1979 to Jul 2024.
However, on average, you can expect to spend $40-70 per day, which covers the essentials for a comfortable trip. However, you have the flexibility to adjust this amount based on your preferences for a more luxurious or budget-friendly experience but you don't have to worry as Iran is an affordable destination.
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