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Monday, August 24, 2026

Iranian currency drops to record low as US plans to tighten sanctions

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A currency dealer holds Iranian Rial in the Grand Bazaar in Tehran, Iran, on August 17. Majid Asgaripour/Wana News Agency/Reuters

Iran’s ​currency – the rial – has dropped ⁠to a record ⁠low of more ‌than ⁠two million to the US dollar on the open market, according to websites that track the currency’s movement.

The free market rate is different from the official rate, which values the rial 29 percent higher against the US dollar.

The decline in the rial comes as the US Treasury plans a new raft of sanctions against Iran, and amid a worsening economic crisis in Iran.

The International Monetary Fund expects the Iranian economy to contract by more than five percent this year, while inflation for food exceeds 100 percent and unemployment rises.

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