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The economic crisis in Iran has led to protests in Iran. The situation has deteriorated at a time when the country is struggling with regional conflicts, international pressure and uncertainty at the top of power. The economy of the Islamic country has deteriorated. Iran's currency Rial has declined sharply. It has fallen to the level of 1.4 million against the dollar, which made inflation uncontrollable and affected the purchasing capacity of the common people.
The first effect of the sharp decline of the Riyal appeared in the traditional markets of Tehran. Prices of goods, food items and medicines dependent on imports have suddenly increased. Many traders shut down shops for fear of losses and started protesting against economic policies. Soon this opposition spread to other cities Shiraz, Isfahan, Kermanshah and Fasa.
According to economic experts, the weakening of the Riyal is not just because of the latest crisis, but the result of the pressure that has been accumulating over the years. Pressure on foreign exchange reserves, declining oil exports and international sanctions have continued to weaken the riyal.
Since the US withdrew from the nuclear deal in 2018 and reimposed stringent sanctions, the Iranian economy has been struggling continuously. Iran's oil earnings were limited, while the inflow of dollars decreased and the government had to interfere heavily in the currency market. Some sections benefited from the multi-rate exchange system, but the inflation of the general public broke the back.
Iranian President Masoud Pezeshkian has made changes to the economic structure to control the situation. Under which leadership in the Central Bank has been changed and the process of abolishing the multi-rate system has been expedited. At the same time, the subsidy rate given on essential imports has also been removed. However, experts believe that these steps can put Rial under more pressure in the short term. Due to the lack of trust in the market and uncertainty about the future, people are turning to foreign exchange and gold, which is increasing the pressure on the riyal.
The discontent triggered by the currency crisis is no longer limited to inflation. In many cities, protestors have held the entire government structure responsible for the economic distress. This situation is becoming a big challenge for the government. People have taken to the streets and are protesting.
Meanwhile, a social media post by US President Donald Trump has rekindled the possibility of a US attack on Iran. This movement is considered the most serious issue facing the Islamic Republic (Iran) since the uprising that took place after the death of Mahsa Amini in 2022.
