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Iran’s Rial Crash Triggers Protests in Tehran and Other Cities as Central Bank Chief Resigns

A central bank shake-up signals a bid to calm markets.

Overview

  • The rial hit a record low of about 1.42 million per US dollar on the unofficial market before edging to roughly 1.38 million, disrupting pricing and trade.
  • Shopkeepers shut stores and rallied in Tehran’s commercial hubs, with similar actions reported in Isfahan, Shiraz and Mashhad as security forces used tear gas to disperse crowds.
  • Official data show December inflation at about 42.2% year over year, with food prices up around 72% and health items near 50%, while planned tax hikes and fuel price changes have heightened anxiety.
  • President Masoud Pezeshkian accepted Mohammad Reza Farzin’s resignation and named Abdolnaser Hemmati to lead the Central Bank, while instructing the interior minister to hear protesters’ demands.
  • State outlets acknowledged the unrest as exchange houses curtailed operations, and reporting linked the currency shock to reimposed UN sanctions and fallout from June’s military escalation.