Iran's Currency Has Collapsed: What It Means Now to Its People, the World

 Iran is facing a severe economic crisis, marked by the dramatic collapse of its currency, the rial, which has dropped to over 1.47 million per US dollar. This situation has led to widespread protests and a national uprising, impacting the lives of millions of Iranians.

• Currency Decline: The rial has lost around 20,000 times its value since the 1979 revolution, with its recent drop triggering serious concerns about the economy.

• Inflation and Cost of Living: Iran's inflation rate has surpassed 42%, with food prices soaring by over 70%. Basic necessities become unaffordable for many, significantly affecting daily life.

• Causes of Economic Strain: Contributing factors include external pressures, such as UN sanctions and military actions, coupled with internal economic mismanagement.

• Protests and Political Unrest: What began as a protest against financial hardship has escalated into calls for political change, with demonstrators chanting against government leadership. Reports indicate a rising death toll among protesters and a harsh crackdown from the government.

• Government Response: In reaction to the protests, the Iranian government has implemented measures like cutting off internet access to control the situation and labeling protesters as "urban semi-terrorists. "

• Shift to Alternative Assets: With the rial's collapse, some Iranians are turning to cryptocurrencies like Bitcoin as a safer financial alternative. Innovative methods like mesh networks are being used for trading during internet blackouts.

• Future Projections: The World Bank predicts a contraction of Iran’s GDP by 2.8% in 2026, indicating that the economic crisis could jeopardize the regime more significantly than external military threats.

The collapse of Iran's currency has led to significant unrest and economic despair among its citizens. With protests escalating and the government responding with force and internet blackouts, the situation reflects a critical point for the Iranian regime in addressing the issues stemming from economic mismanagement and external pressures. 

https://www.ibtimes.co.uk/irans-currency-has-collapsed-what-it-means-now-its-people-world-1770387