Iran's Bazaar Merchants Reel from Record-Low Rial and US Sanctions

Tehran's Grand Bazaar is normally bustling with shoppers ahead of the new school year, but this time around, shopkeepers are struggling to stay afloat due to a collapsing currency and weaker consumer demand.

A shopkeeper shared a video shot through quiet lanes, saying there were hardly any customers. 'With the dollar at 2,000,000 rials, what kind of situation is this?' he asked, describing how merchants are forced to cut margins just to attract customers.

The Iranian rial has hit an all-time low against the US dollar, with unofficial exchange rates showing it's worth over two million rials per dollar. This has pushed up the cost of imported goods while simultaneously eroding consumers' ability to pay for them.

Traders across Iran face a dilemma: raise prices to cover their own costs or keep prices low enough so that customers can still afford to buy. Many are struggling with rents, and some have said businesses are being forced to give up shops because they can no longer cover the costs.