The exchange rate of the US dollar in Iran's free market broke 240,000 tomans on Monday, reaching between 243,000 and 245,000 tomans, marking a record low. 1 toman equals 10 rials, approximately 2.43 to 2.45 million rials per dollar. It opened at about 240,500 tomans, compared to around 233,000 tomans last week; a year ago it was about 111,000 tomans, more than doubling. Some market sources indicated a high point of about 245,000 tomans on that day, with a weekly increase of over 6%.

The official or bank rate remains significantly lower than the market price, with earlier reports around 173,000 tomans, and some records placing the official rate at about 137,000 tomans, widening the gap with the free market. The euro in the free market is around 273,000 to 278,000 tomans, and the pound is about 318,000 to 325,000 tomans. Imam gold coins have risen to about 242 to 247 million tomans. Annual inflation is about 61.4%, with food prices rising approximately 128.1% year-on-year. The US sanctions, including "Operation Economic Outcast," have intensified, compounded by military conflicts affecting shipping and oil insurance in the Strait.

Suppliers are households and importers selling their local currency to exchange for dollars and gold coins, while buyers are currency exchangers and holders who can still supply foreign currency in the parallel market. The driving factors include sanctions, war premiums, and the inability of the official exchange rate to absorb demand, leading to a shift of funds from rial cash to dollars, gold coins, and cross-border assets. Beneficiaries are those who already hold foreign currency or gold coins, while those under pressure are merchants importing basic goods at official prices but restocking at market prices, as well as residents whose wages are denominated in rials. The dual exchange rate reflects both subsidized imports and speculation in the parallel market on the same day’s price list.

Source: Public Information