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Iran's currency, the rial, continues to face depreciation as exchange rates fluctuate. The Central Bank of Iran (CBI) has released the official exchange rate for foreign currencies, with $1 now equaling 389,984 Iranian rials and one euro equaling 422,269 rials. This marks a slight decrease compared to the previous rate of 421,818 rials for one euro. The exchange rates for other currencies have also experienced fluctuations. The official exchange rate is primarily used for the import of essential products in Iran. However, alternative systems such as the SANA system and the NIMA scheme have different exchange rates. The SANA system sets the price of one euro at 501,046 rials and $1 at 462,738 rials, while the NIMA scheme sets the price of one euro at 467,831 rials and $1 at 432,062 rials. On the black market, $1 is currently worth about 612,000–615,000 rials, and one euro is valued at approximately 662,000–665,000 rials [17fa7b4e].
These fluctuations in exchange rates further contribute to the depreciation of Iran's currency. The rial has been under pressure for years due to high inflation rates and the impact of US sanctions. The US withdrawal from the JCPOA nuclear deal in 2018 and the subsequent imposition of sanctions on Iran's oil exports and banking sector have significantly affected the value of the rial. The recent attack on Israel has added to Iran's economic challenges, raising concerns about potential trade and diplomatic restrictions. As a result, millions of Iranians have been pushed below the poverty line. The future of Iran's currency remains uncertain as the country grapples with ongoing economic difficulties [8779cb7c] [1030332d] [17fa7b4e].
After the presidential elections in Iran, the price of the US dollar in the Iranian market fell by more than 6% to 580,000 rials. This decrease in the value of the dollar can be attributed to the victory of Masoud Pezeshkian, a moderate politician, who pledged to fix Iran's economy by opening up to the world and restoring the 2015 nuclear deal. In contrast, his rival, Saeid Jalili, advocated for resisting US sanctions and relying on domestic resources. The price of the Bahar-e-Azadi gold coin also dropped by 2.5% to 415 million rials despite a rise in global gold prices. It is worth noting that the Iranian government maintains a fixed exchange rate of 285,000 rials for the US dollar for imports of basic goods and equipment [8779cb7c] [1030332d] [17fa7b4e] [28495881].
In a recent development, President Masoud Pezeshkian has announced a bold economic strategy aimed at attracting $100 billion in foreign investments to achieve an annual economic growth target of 8%. This announcement was made during his first live televised interview on September 1, 2024. Currently, Iran's economic growth rate stands at 4%, while inflation is at a staggering 40%. Pezeshkian emphasized that the country requires up to $250 billion to reach its economic goals, with more than half expected to come from domestic resources. However, he acknowledged that international sanctions pose significant challenges, affecting various entities in Iran, including the central bank and government officials, due to past accusations of supporting militant groups [e62efc4e].