Tehran, Iran – according to world agencies, the biggest protests in three years erupted on Monday after the national currency sharply fell to a new low against the US dollar, and the head of the central bank resigned.
State television confirmed the resignation of Mohammad Reza Farzin, while traders and shops lined up on Saadi Street in central Tehran and in the Shush district near the main Bazaar. Merchants at the bazaar, as earlier during the 1979 Islamic Revolution, played a notable role in the events.
The official IRNA agency recorded a wave of protests. Witnesses reported similar actions in other major cities, notably Isfahan, Shiraz, and Mashhad. In some neighborhoods of the capital, security forces used tear gas to disperse demonstrators.
Monday gatherings were the largest since 2022, when mass protests erupted across the country after the death of 22-year-old Mahsa Jina Amini in a police station. She was detained allegedly for violating hijab rules.
Witnesses told AP that traders on Monday closed their shops and urged others to do the same. Semi-official ILNA reported that many businesses paused trading, though some shops remained open.
On Sunday, protests were confined to two large mobile markets in central Tehran, where demonstrators chanted anti-government slogans.
The rial continued to fall: on Sunday it was valued at about 1.42 million per dollar, and on Monday trading remained around 1.38 million per dollar.
Rumors of Farzin’s possible resignation circulated throughout the week. In 2022, when he took office, the rial stood at about 430,000 per dollar.
Such rapid depreciation heightens inflationary pressure, pushing up prices for food and other daily goods, while making life harder for households. The interaction with rising fuel costs could intensify these effects.
According to the official statistical center, December inflation stood at 42.2% year-on-year, and compared with the previous month the figure rose by 1.8%. The cost of food products rose 72%, medical and health-related goods by 50% compared with December of the previous year. Many critics say this brings Iran closer to hyperinflation.
Official media reported plans by the government to raise taxes in the new financial year, which starts on March 21, adding to people’s concerns.
In 2015, the exchange rate stood at about 32,000 rials per dollar at the time of reaching the nuclear deal, which was later scrapped after then-President Donald Trump withdrew the United States from it in 2018.
Uncertainty about the risk of a new conflict is also growing after a 12-day armed confrontation between Iran and Israel in June. Many Iranians fear a wider confrontation that could involve the United States and amplify concerns in financial markets.
In September, the UN renewed sanctions related to Iran’s nuclear program, using the “snapback” mechanism. The measures once again frozen Iran’s overseas assets, halted arms trading, and imposed restrictions on the missile program.
This broad context – economic instability, international pressure, and internal socio-economic problems – continues to shape tensions both in society and in Iran’s currency and goods markets, creating a sense of uncertainty about the country’s future financial environment.
Economic pressure and its impact on daily life
The fall in the rial’s value drives up prices of basic goods that households feel in daily life. Projections for tax policy and budget expenditures also influence people’s expectations for economic stability in the coming months.
International context and future risks
Economic sanctions and international tensions shape risks for the currency and energy supplies, and affect Iran’s investment climate. In light of these processes, Iranian society faces uncertainty about how these events will unfold and what impact they will have on people’s lives.
All this confirms that Iran’s economy and political situation remain at the center of attention for world observers: the exchange rate, inflation, and government policy continue to shape the overall picture of instability and uncertainty in the country.