Iranian rial crashes to 1.63 million per US dollar: How just having $735 now makes you a billionaire in Iran amid soaring inflation and sanctions

Iran currency collapse explained: If you have $735 in your pocket today, you are technically a billionaire in Iran. That’s because Iran’s national currency has plunged to a historic low, with the US dollar now trading above 1.63 million rials in the free market.

Iranian Rial Hits Record Low at 1.63 Million Per US Dollar: How $735 Turns Into More Than 1.2 Billion Rials in Iran

On February 19 in Tehran, currency trackers Alanchand and Bonbast showed the dollar between 1,637,000 and 1,646,500 rials, the weakest level ever recorded for the rial, as per a Nomusica report. At that rate, $735 converts to more than 1.2 billion rials.

But on the ground, that “billionaire” status doesn’t mean wealth. It reflects how dramatically the rial has collapsed and how deeply the economic crisis is affecting everyday life.


Also read: Anthropic’s Super Bowl ad pays off: How Claude users surge 11% and enters Apple App Store's top 10 after taking aim at OpenAI

Official vs Free Market Rate: Why the Gap Matters

There is now a wide gap between the government’s official rate and reality. The Central Bank of Iran sets the official rate at about 1.28 to 1.29 million rials per dollar, far stronger than the open market rate, as per the Nomusica report. The difference highlights the growing disconnect between policy and the pressures facing ordinary citizens.

Inflation in Iran Is Crushing Household Purchasing Power

Inflation is estimated at 50 to 60 percent per year. Prices for food, fuel, medicine, and imported goods have surged. Families are struggling to afford basic necessities, and purchasing power has fallen sharply. In practical terms, even as the number of rials needed to buy a dollar climbs into the millions, what those rials can actually buy continues to shrink.

Sanctions Pressure and Falling Oil Revenues Deepen Crisis on Iran’s Economy

The pressure has intensified since stronger US sanctions were imposed in 2025. The restrictions have limited oil exports and reduced access to foreign currency, making it harder to stabilize the economy.

Data from the Central Bank of Iran show that oil export revenues are declining just as capital flight accelerates. In the first half of the current Iranian fiscal year, which began on March 21, 2025, the nominal value of oil exports fell about 10 percent to $30.7 billion, as per an Iranintl report. Total exports reached about $59 billion, while imports were roughly $48 billion, leaving an apparent trade surplus of $11 billion.

Also read: Word of the day: Coterie

Yet during that same period, nearly $15 billion in capital left the country, a record outflow that more than offset the surplus.

Even the oil revenues that are recorded on paper do not fully translate into cash for the government. A member of parliament’s Budget and Planning Commission said Iran earned only $20 billion from oil exports in the first eight months of the fiscal year, far below the nominal value of shipments. Of that $20 billion, only $13 billion had actually been received, according to Gholamreza Tajgardoon, head of parliament’s Joint Budget Commission, as per the Iranintl report.

Rising Government Debt and Expanding Money Supply

As revenues shrink and access to funds tightens, the government has increasingly relied on domestic borrowing. By November 2025, government debt to the banking system had risen 41 percent year over year, while its debt to the central bank surged 68 percent. Commercial banks’ borrowing from the central bank rose 63 percent.

Liquidity expanded more than 40 percent compared with a year earlier, a key driver of inflation and currency depreciation.

Rial Loses 75% of Its Value in a Year

The result is visible in the exchange rate. The rial has lost roughly 75 percent of its value since February last year. Protests began in late 2025 when the currency first crossed 1.4 million per dollar, spreading across major cities as shopkeepers, students, and workers reacted to rising prices and economic hardship.

FAQs

How bad is inflation in Iran right now?

Inflation is estimated at 50–60 percent per year, sharply increasing the cost of everyday goods.

Why is government debt in Iran rising?

With shrinking revenues, the government has turned to domestic borrowing, increasing debt to banks and the central bank.