The Iranian rial continued its decline this morning, with the dollar reaching approximately 220,000 toman on the free market, according to a review by the Jerusalem Center for Foreign and Security Affairs (JCFA) Iran desk. Gold prices also rose, with 18-karat gold trading at 22.8 million toman. The surge comes despite the central bank's pledge to inject up to $2 billion to stabilize the market, reflecting public flight to safe havens amid the war, sanctions, and fears of further damage to oil exports.
The Iranian rial's slide accelerated Friday, with the dollar crossing the 220,000-toman threshold on the free market, according to a review by the Jerusalem Center for Foreign and Security Affairs (JCFA) Iran desk. Gold prices also surged: 18-karat gold reached 22.8 million toman, and the Imami coin hit 229 million toman. The currency traded near 212,000 toman at the start of the week, losing roughly 4% in five days. The central bank's pledge to inject up to $2 billion to stabilize the market has failed to restore confidence, as the public flees to safe havens amid the war, sanctions, and fears of further damage to oil exports.
On Wednesday, Sep 2, The Zioneer reported the dollar crossing 220,000 toman and reaching 221,000 in some transactions. That same day, the rial hit a record low of 2.22 million per dollar, and a viral video showed stacks of banknotes worth only $300 at the prevailing rate. Earlier, in early August, the dollar traded at 190,000 toman, as The Zioneer reported following President Trump's statement that he was 'destroying the Iranian currency.' The JCFA review now provides a comprehensive analysis attributing the flight to gold and hard currency to a combination of factors: the ongoing war, intensifying sanctions, and public skepticism about the regime's ability to shield the economy from further damage to oil exports — the country's primary revenue source.
The currency crisis is unfolding against a backdrop of U.S. sanctions and a potential U.S.-Iran deal that Israeli analysts have warned could provide economic oxygen to the regime, as The Zioneer has reported. The public's rush to safe havens suggests that Iranians do not believe the regime can halt the rial's decline despite official reassurances. No new stabilization measures have been announced.
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