Protests Erupt in Iran as Currency Crashes

TEHRAN, Iran – Traders and shopkeepers in Iran continued protests for a second day on Monday, reacting to a dramatic fall in the national currency against the U.S. dollar.

Social media footage revealed hundreds gathering in downtown Tehran’s Saadi Street and the Shush district, which is near the Grand Bazaar—historically significant since it played a crucial role in the 1979 Islamic Revolution.

According to witnesses, many shopkeepers closed their stores and encouraged others to follow suit. The semi-official ILNA news agency reported that while some businesses remained open, a significant number had stopped trading.

Although security was reportedly tight during the protests, there were no indications of police intervention.

On Sunday, demonstrations were primarily confined to two major mobile markets in downtown Tehran, where protesters expressed opposition to the government.

The Iranian rial dropped to about 1.42 million rials per dollar on Sunday, and further decreased to 1.38 million rials on Monday.

This rapid devaluation has worsened inflation, leading to higher costs for food and other essential items, which is putting more pressure on household finances. The situation could worsen due to recent adjustments in fuel prices.

As reported by the state statistics center, inflation reached 42.2% in December compared to the same month last year, increasing by 1.8% since November. Food prices have surged by 72% since last December, while health-related items have risen by 50%. Critics are starting to view these figures as indicative of potential hyperinflation.

Concerns have also been raised by reports that the government plans to increase taxes in the upcoming Iranian New Year, starting March 21.

Back in 2015, when the nuclear deal was established, the currency was around 32,000 rials to the dollar. But that agreement fell apart in 2018 when the U.S. withdrew under President Trump’s administration. There are worries about increased tensions following the recent 12-day conflict between Iran and Israel, and many people are apprehensive about the possibility of a larger conflict involving the United States, which adds to the market’s unease.

In September, the United Nations reinstated sanctions related to Iran’s nuclear activities through what diplomats refer to as a “snapback” mechanism. This action has again frozen Iranian assets abroad, halted arms transactions, and imposed penalties related to its ballistic missile program.