The Iranian rial has suffered an unprecedented collapse over the past 46 years, losing nearly 20,000 times its value against the US dollar, according to international news agencies. The sharp decline highlights the long-term economic impact of sanctions and political isolation on Iran’s economy.

In 1979, before the Islamic Revolution, one US dollar was exchanged for around 70 Iranian rials. Today, the same dollar is worth approximately 1.4 million Iranian rials, reflecting one of the steepest currency devaluations in modern history.

Economists say the steady fall of the rial is closely linked to repeated rounds of international economic sanctions imposed on Iran over several decades. Major sanctions were first introduced in 1979 following the hostage crisis, and were expanded again in 1981, 1984, and 1995, each time putting additional pressure on Iran’s financial system, trade, and foreign investment.

The situation worsened significantly during the presidency of Donald Trump, when the United States withdrew from the Iran nuclear deal and reimposed harsh sanctions under the “maximum pressure” campaign. These measures targeted Iran’s oil exports, banking sector, and access to global financial markets, accelerating the currency’s decline.

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As the rial weakened, inflation surged, purchasing power dropped sharply, and daily life became increasingly difficult for ordinary Iranians. Prices of basic goods, fuel, and housing rose dramatically, forcing many families to struggle with the rising cost of living.

Analysts say the collapse of the rial reflects deep structural problems in Iran’s economy, including limited foreign exchange reserves, low investor confidence, and prolonged isolation from global markets. Without meaningful economic reforms and relief from sanctions, experts warn that pressure on the currency is likely to continue.