Iran's Rial Plummets to 2.8 Million Against Dollar Amid Sanctions and Tensions

The value of Iran's Rial has plummeted to over 2.8 million against the US dollar in the country's free market, while the official rate remains at around 1.6 million rials.

This drastic difference is a result of the ongoing sanctions, maritime blockade, restrictions on oil exports, and geopolitical tensions, leading to a decline in foreign-exchange revenues and high inflation.

The sharp increase in production costs affects import-dependent industries such as automobiles, household appliances, pharmaceuticals, and food, causing prices to skyrocket and adding to the unemployment rate.

Many production lines have shut down due to rising costs and limited access to preferential foreign currency, forcing companies to convert their liquidity into safe assets like gold, foreign currency, and property rather than investing in new projects.