On Sunday, Iran’s currency hit an all-time low of 613,500 against the dollar while its citizens marked the Persian New Year.

On Sunday, people were trying to exchange rials for foreign currency at Tehran’s main hub of exchange shops in Ferdowsi Street, but most were closed due to the Nowruz holidays, which are run from March 20 to April 2.

According to Mohsen, a 32-year-old worker at a currency exchange, the holiday is causing prices to decrease. He stated, “The prices are not accurate. There is a high demand for buying US dollars, but only a few exchange shops are open.” Other Iranian individuals also commented on the situation, but requested to remain anonymous due to potential consequences for speaking to foreign media about the country’s economic challenges.

The two-week vacation presents a chance to visit other countries, leading to a higher demand for U.S. dollars and Euros.

Mojtaba, a father aged 49, was surprised by the recent 5% drop in the value of the rial over the past six days, especially since the entire country is currently on vacation.

Niloufar and her husband Behzad, aged 28 and 30 respectively, mentioned that they had secured a discounted week-long trip to Turkey. However, they are now considering paying the full price for the tour.

The fluctuation of currency values has a significant impact on various markets, such as the housing and rental market.

On March 18, which was the last workday before the holiday, the exchange rate was 590,000 per dollar.

A significant number of Iranians have watched their personal finances diminish due to the devaluation of their local currency. Currently, it is only worth around 5% of its value in 2015, when Iran entered into a nuclear deal with global leaders.

From its previous value of 32,000 rials per dollar, the currency has significantly decreased and now stands at hundreds of thousands. This decline was at its lowest point in February 2023 when it briefly reached 600,000 reals per dollar. Since then, it has not surpassed 439,000.

In February 2024, the Statistics Center of the government reported an inflation rate of 42.5% for the country, while the Central Bank stated it was over 46%. The discrepancy has not been explained.

Iran’s interactions with Western nations have reached an all-time low after former U.S. President Donald Trump rejected a deal that required the country to cease its nuclear program in exchange for restored funds and other advantages. President Joe Biden has expressed willingness to reengage in a nuclear agreement with Iran, but efforts to reach a solution and re-establish the deal have faltered in August of 2022. In the meantime, tensions in the Middle East have escalated, posing challenges to nuclear diplomacy with Iran. Additionally, Iran has caused further discord among Western nations by providing armed drones to Russia, which have been utilized in the invasion of Ukraine.

The current poor economic state has caused widespread dissatisfaction with the government in the past, but has also compelled numerous Iranians to prioritize providing for their basic needs instead of participating in risky political actions, due to a severe crackdown on opposing views.

The rial hit an all-time low shortly after a parliamentary election with the lowest participation rates since the 1979 Islamic Revolution, prioritizing hard-line candidates.

For the last twenty years, the parliament has been under the control of conservative members, who frequently chant “Death to America” during meetings.