On the morning of Thursday, February 9th, Iran's currency market faced another unprecedented jump, with the price of each US dollar heading towards a historic peak of 170,000 tomans. At the same time, the euro rate also crossed the 200,000 tomans mark; a development that is seen as a clear indication of increasing instability in the country's financial markets.
Roots of the economic crisis
Economic analysts attribute the roots of this crisis to the government's ineffective currency policies amid intensified sanctions, severe budget deficits, and widespread corruption. Additionally, attempts to unify the currency rate without providing the necessary infrastructure and the lack of a clear plan for managing financial markets have also contributed to this chaotic situation.
According to these experts, if the current conditions persist, the trend of the rial's depreciation could bring the US dollar close to the 200,000 tomans range within the next two weeks; a scenario that would have heavy inflationary and livelihood consequences for Iran's economy and households.