On 27/1, foreign exchange shops in Tehran listed the exchange rate at 1,5 million rial to one USD, an unprecedented low. This means the Iranian currency has depreciated by approximately 25% in less than two months. In mid-12/2025, the exchange rate at these shops was 1,12 million rial to one USD.

Commenting on this depreciation, Abdolnaser Hemmati, the new Governor of the Central Bank of Iran, stated that the "foreign exchange market is operating according to natural laws".

Regional traders reported that the deployment of the US aircraft carrier strike group USS Abraham Lincoln to the Middle East this week triggered a wave of panic buying of foreign currency, as Iranians sought to protect their savings against the risk of military escalation with the US.

A currency exchanger in Tehran holds a one USD bill and the equivalent amount in rial, according to the exchange rate on 25/1. *Photo: Reuters*

This latest depreciation follows protests that have shaken Iran since late December last year, sparked by merchants dissatisfied with the economic situation and the rial's devaluation. The protests, initially peaceful, quickly escalated into deadly violence from 8/1. The violence caused severe damage to state and private property, with many shops, government agencies, and public service facilities damaged.

Iranian officials announced on 21/1 that a total of 3.117 people had died during the weeks-long wave of protests, including 2.427 security personnel and civilians. On the same day, Iran's Prosecutor General Mohammad Movahedi declared that "the rebellion has ended" and pledged severe action against those behind the protests.

Iranian officials accused US and Israeli intelligence agencies of direct involvement, providing funding, training, and media support to rioters and armed terrorists who infiltrated the protests.

The US and Israel did not comment on these allegations. US President Donald Trump stated on 27/1 that "another beautiful fleet" was en route to Iran and expressed hope that the country would reach an agreement with Washington. Trump did not specify what agreement he sought with Iran.

Hong Hanh (According to Al Jazeera, MEO)